Ripple Labs plans to buy back $285 million worth of shares in tender offer
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Amid regulatory uncertainty, Ripple Labs launched a $285 million stock buyback, valuing the company at $11.3 billion.
On January 10, Ripple Labs, the cryptocurrency company famous for XRP, Announce Repurchased $285 million worth of company stock from early investors and employees, valuing the company at $11.3 billion. The tender offer allows investors to sell up to 6% of their shares.
When confirming the buyback, Ripple revealed that it plans to allocate $500 million for the buyback, including the conversion of restricted stock units into shares and related taxes.
Ripple CEO Brad Garlinghouse said Ripple aims to conduct regular share buybacks to enhance investor liquidity and has no current plans to list in the United States due to regulatory uncertainty. The company currently holds over $1 billion in cash and over $25 billion in cryptocurrencies, primarily the XRP coin.
This follows Ripple’s recent legal victory with the U.S. Securities and Exchange Commission (SEC), where a U.S. District Judge ruled that sales of XRP on public exchanges did not constitute an unregistered securities offering.
Founded in 2012, Ripple focuses on developing payment systems that facilitate cross-border transactions and promoting the use of XRP. Despite the challenges posed by the SEC lawsuit, Garlinghouse noted that 95% of their clients are non-U.S. financial institutions.
As of Wednesday, XRP had a market capitalization of $30 billion.
