Ripple Plans $285M Equity Repurchase, Valued at $11 Billion
According to Reuters, blockchain payments provider Ripple announced intentions this week to repurchase $285 million worth of employee and investor equity. The company decided to make a move as it looks like the lawsuit filed by U.S. regulators is starting to calm down after many years of uncertainty.
Key Details:
- $285 million share repurchase values Ripple at $11 billion.
- Investors can only sell a maximum of 6% of their holdings.
- No U.S. public listing is planned amid a pending SEC case.
- 95% of Ripple’s business is now outside the U.S. borders.
The tender offer arrives on the heels of a judge’s ruling that XRP coin transactions on open crypto exchanges fell outside securities issuances policed by the Securities and Exchange Commission.
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Ripple CEO says 95% of customers are non-US-based
“Growing in the headwinds of the SEC lawsuit was certainly a challenge, but 95% of our customers are non-US financial institutions,” said CEO Brad Garlinghouse.
Ripple is doing relatively well, with $1 billion in cash and over $25 billion in digital assets, including XRP. They recently emphasized their financial strength by providing payouts to shareholders.
Garlinghouse clarified that, due to ongoing legal uncertainties, the company is not currently considering going public in the U.S. Instead, Ripple is focused on improving the availability of funds for its current stakeholders.
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The news comes at a time when XRP, the native token of Ripple, is not performing at its best. According to the latest data, XRP has been trading 7.3% down in the last 30 days. However, XRP is up by 63% year-to-date and is trading at $0.5713, with a 1% price surge in the last 24 hours.
