Ripple initiating $285 million share buyback that values company at $11 billion
Quick Take
- Ripple’s purchase of $285 million in shares owned by early investors will value the company at $11.3 billion.
- The company’s CEO said Ripple holds more than $1 billion cash and over $25 billion in digital assets, mostly of XRP coins, on its balance sheet, according to Reuters.
Crypto-payments firm Ripple Labs is planning to buy back $285 million worth of its shares from early investors, a move that will value the company at $11.3 billion, according to a company spokesperson.
Early investors will only be able to sell as much as 6% of their holdings, according to Reuters, which cited anonymous sources and first reported the news. Ripple plans to spend $500 million "to cover the costs of converting restricted stock units into shares and taxes," Reuters also reported.
Ripple, well known for its use of the 
XRP
+0.55%
digital token, is privately owned. Company CEO Brad Garlinghouse said it plans on more buybacks to provide liquidity for investors but does not plan to bring Ripple public in the U.S. given regulatory uncertainty, according to the report.
Expansion abroad
Last October, Ripple celebrated the dismissal of all charges against its executives in an ongoing lawsuit brought by the Securities and Exchange Commission. Since then it has been working to expand in Europe and Africa.
Garlinghouse also said Ripple possesses more than $1 billion cash and over $25 billion in digital assets crypto, made up mostly of XRP coins, on its balance sheet, the report also said.
Disclaimer: The Block is an independent media outlet that delivers news, research, and data. As of November 2023, Foresight Ventures is a majority investor of The Block. Foresight Ventures invests in other companies in the crypto space. Crypto exchange Bitget is an anchor LP for Foresight Ventures. The Block continues to operate independently to deliver objective, impactful, and timely information about the crypto industry. Here are our current financial disclosures.
© 2023 The Block. All Rights Reserved. This article is provided for informational purposes only. It is not offered or intended to be used as legal, tax, investment, financial, or other advice.
