Brief: Ripple Initiates $285 Million Share Buyback, Valuing Company at $11.3 Billion
Cryptocurrency company Ripple Labs, renowned for its XRP coins, is making a significant move by repurchasing $285 million worth of shares from early investors and employees.
This tender offer, valuing Ripple at $11.3 billion, comes in the aftermath of a legal victory against the U.S. Securities and Exchange Commission (SEC), where a judge ruled that XRP sales on public exchanges were not unregistered securities offerings.
Ripple plans to allocate $500 million for the buyback, primarily to cover the costs of converting restricted stock units into shares and associated taxes. Brad Garlinghouse, Ripple’s CEO, disclosed that the company currently holds over $1 billion in cash and a substantial $25 billion in digital assets, mainly composed of XRP coins.