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Ripple To Buy Back $285 Million Worth Of Its Shares From Early Investors
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Ripple To Buy Back $285 Million Worth Of Its Shares From Early Investors

  • Crypto-payments firm Ripple Labs has announced to buy back $285 million worth of its shares from early investors, valuing the company at $11.3 billion.

Crypto-payments firm Ripple Labs is planning to buy back $285 million worth of its shares from early investors, valuing the company at $11.3 billion. 

The share buyback is intended to provide liquidity for early investors, who will be able to sell up to 6% of their holdings. 

Ripple also plans to spend $500 million to cover the costs of converting restricted stock units into shares and taxes.

Ripple, known for its use of the XRP digital token, is privately owned and has no plans to go public in the United States due to regulatory uncertainty. 

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However, CEO Brad Garlinghouse has indicated that the company may consider an initial public offering (IPO) in the future. 

Since the dismissal of all charges against its executives in an ongoing lawsuit brought by the Securities and Exchange Commission (SEC) in October2023, Ripple has been expanding its operations in Europe and Africa.

Garlinghouse revealed that Ripple has more than $1 billion in cash and over $25 billion in digital assets, primarily XRP coins, on its balance sheet. 

The share buyback and the company’s strong financial position indicate that Ripple is confident in its future prospects. 

The company is well-positioned to capitalize on the growing demand for digital payments and cross-border transactions.

Ripple’s decision to buy back shares is also a sign of its commitment to providing liquidity for its investors. 

This move is likely to be welcomed by early investors who have been seeking an opportunity to cash out some of their holdings.

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