Cryptocurrency company Ripple Labs, known for XRP, has initiated a $285 million share buyback program as part of a strategic move to enhance its financial position and provide liquidity for investors.
The tender offer has reportedly elevated Ripple‘s valuation to $11.3 billion, with share buybacks signaling confidence in the business and potentially benefiting investors.
Early investors and employees are allowed to sell up to 6% of their stake in the privately held company through this initiative. Ripple Labs confirmed the legitimacy of the buyback, expressing commitment to a $500 million comprehensive program covering stock unit conversions and tax obligations.
Ripple CEO Brad Garlinghouse emphasized the company’s intent to conduct regular share buybacks for investor liquidity, stating that despite regulatory uncertainties, there are no immediate plans for Ripple to go public in the United States. Ripple’s financial position, with over $1 billion in cash reserves and digital assets exceeding $25 billion, was highlighted by Garlinghouse.
The share buyback follows Ripple’s legal victory against the U.S. Securities and Exchange Commission (SEC) and coincides with the SEC’s approval of 11 spot Bitcoin ETFs, indicating a growing acceptance of crypto.
Ripple sees this move as potentially legitimizing crypto, encouraging institutional investment, and promoting real-world use cases for the industry.
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