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Ripple’s stock repurchase initiative assesses the company’s worth at $50 billion, according to Bloomberg.
Despite the prevailing bear market, today’s report indicates a valuation exceeding the $40 billion at which the company secured funding in November.
Ripple CEO Brad Garlinghouse prepares to testify in the Senate (Jesse Hamilton/CoinDesk)
Key points:
- Ripple, the blockchain enterprise closely linked with XRP, has initiated a $750 million share buyback that would appraise the company at roughly $50 billion, as reported by Bloomberg.
- This action follows a $500 million funding round at a $40 billion valuation in November, supported by prominent hedge funds and cryptocurrency investment firms.
Ripple, the blockchain entity closely associated with the XRP Ledger (XRP) network, has started a share repurchase that could value the company at approximately $50 billion, as indicated by Bloomberg on Wednesday.
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The blockchain payments firm intends to buy back as much as $750 million in shares from investors and employees through a tender offer projected to continue until April, according to sources familiar with the situation.
Ripple plays a significant role in the XRP Ledger network, a blockchain designed for financial institutions to facilitate cross-border payments and settle transactions within seconds. The company has reported processing over 100 billion transactions within its payment ecosystem.
The firm has been rapidly growing through acquisitions, enhancing services related to trading and digital asset infrastructure. This expansion included the $1.25 billion acquisition of prime brokerage Hidden Road and the purchase of corporate treasury business GTreasury for $1 billion. Additionally, the company issues a U.S. dollar stablecoin, the $1.5 billion , through its custody division.
This initiative follows a significant funding round that occurred just months earlier. In November, Ripple raised $500 million at a $40 billion valuation from a consortium of investors that included firms managed by affiliates of Fortress Investment Group, affiliates of Citadel Securities, Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace.
This suggests a 25% increase in valuation since the fundraising, notwithstanding a downturn in the cryptocurrency market where bitcoin and XRP experienced declines of 30%-40% during the same timeframe.
