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Ripple CEO Confirms No IPO in Sight, Reveals $285M Share Buyback Strategy

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Ripple Labs, a major player in the cryptocurrency industry, has recently announced its desire to buy back a stark number of shares worth $285 million. It is designed to support the confidence level in investor’s stability within the company’s financial capability.

Understanding the Offer

Reuters citing anonymous sources has mentioned that the company’s so-called ‘tender offer’ or the $150 buyback puts Ripple’s market value at an astounding $1.3 billion. Significantly, it permits a controlled sale of partial ownership interests investors can dispose of up to 6%, thereby enabling an orderly divestment.

Dispelling IPO Speculations

Contrary to speculations, Garlinghouse clarified that the buyback offer does not indicate Ripple’s imminent plans for IPO in the U.S. for which he cited regulatory uncertainties. 

Utilizing $500M for Buyback

Ripple CEO Brad Garlinghouse provided details on how the company was going to use $500 million for share repurchase. This amount is set to cater for the conversion of limited stock units into shares and taxes arising from this. 

Presently, Ripple boasts a strong financial position with over $1 billion in cash and more than $25 billion in cryptocurrency, predominantly XRP coins. Most XRP stock is safely locked in escrow, with a smart release plan that works out monthly.

Ripple’s move follows the company’s partial win against the U.S. Securities and Exchange Commission. The court’s ruling declared that XRP are not securities, and neither do their sales fall under the securities transaction. 

Source

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