United

Terra

Read

Ripple Labs Inc. has announced its plans to repurchase a $285 million stake from its early investors and employees. This initiative is part of a broader $500 million strategy, which includes the cost of converting restricted stock units into common shares, as <a rel="noopener noreferrer nofollow" href="https://www.reuters.com/technology/ripple-buy-back-285-million-its-shares-valuing-company-11-bln-sources-2024-01-10/">reported by Reuters</a>.
<h2 id="strong-ripple-s-strategic-buyback-approach-strong">Ripple’s Strategic Buyback Approach</h2>
Ripple’s decision to buy back shares represents a pivotal move for the company, particularly in its approach to managing investor relations and corporate control. Under the buyback terms, investors will be limited to selling only 6% of their holdings, positioning Ripple’s valuation at approximately $11.3 billion. This development follows the company’s successful funding history, having raised $293.8 million over 14 rounds since its inception in 2015.
The strategy reflects Ripple’s preference for internal financial restructuring over the traditional route of an<a href="https://coingape.com/ripple-ipo-sec-lawsuit-nears-end-xrp-news/" rel="noopener noreferrer nofollow"> initial public offering</a> (IPO). By opting for a buyback, Ripple maintains greater control over its business operations and avoids the complexities and regulatory demands of becoming a publicly traded company. This approach is especially pertinent given the uncertain regulatory environment in the United States, where Ripple is based. <a href="https://coingape.com/ripple-ceo-brad-garlinghouse-discloses-next-action-plan-market-prediction/" rel="noopener noreferrer nofollow">CEO Brad Garlinghouse </a>has confirmed that the company, holding over $25 billion in crypto assets and more than $1 billion in cash, does not intend to go public in the near future.
<h2 id="strong-ripple-s-growth-amid-regulatory-challenges-strong">Ripple’s Growth Amid Regulatory Challenges</h2>
Ripple’s journey has not been without its challenges, particularly in light of its ongoing <a href="https://coingape.com/xrp-legal-battle-escalates-anticipation-grows-over-sec-appeal-denial/" rel="noopener noreferrer nofollow">legal battle </a>with the U.S. Securities and Exchange Commission (SEC). Since December 2020, Ripple has been engaged in a lawsuit with the SEC, alleging that the company conducted an unregistered security offering by selling XRP tokens. This case saw a major development in July 2023, when Judge Analisa Torres ruled that<a href="https://coingape.com/breaking-us-judge-rules-xrp-is-not-a-security/" rel="noopener noreferrer nofollow"> XRP is not a security</a> with its programmatic sales on exchanges. However, it was deemed a security when sold to institutional investors in funding rounds.
Despite these hurdles, Ripple has demonstrated resilience and growth, as emphasized by Garlinghouse, who noted that 95% of the company’s customers are non-U.S. financial institutions. The buyback strategy offers an alternative exit route for early investors, diverging from the more traditional path of an IPO. Such a move indicates Ripple’s commitment to providing flexible and pragmatic solutions for its stakeholders while navigating the complexities of the global financial landscape.
Read Also: <a href="https://coingape.com/terra-luna-announces-major-nft-project-integration/https://coingape.com/terra-luna-announces-major-nft-project-integration/" rel="noopener noreferrer nofollow">Terra (LUNA) Announces Major NFT Project Integration</a>
The post <a href="https://coingape.com/ripple-labs-to-buy-back-285m-stake-in-major-shareholder-move/" rel="noopener noreferrer nofollow">Ripple Labs to Buy Back $285M Stake in Major Shareholder Move</a> appeared first on <a href="https://coingape.com" rel="noopener noreferrer nofollow">CoinGape</a>.

Ripple Labs to Buy Back $285M Stake in Major Shareholder Move

Table of Contents

Coingape News Media

Other articles published on Jan 10, 2024

Shiba Inu: What do SHIB whales know that we don’t

About 10 Fund Companies Preparing to Launch Spot Crypto ETFs in Hong Kong: HashKey Group

Valve Allow Games Utilizing Generative AI on Steam Based on New Rule Changes

Thailand to move forward with $14 billion digital wallet program

Former SEC Lawyer Comments: Is the SEC Legally Responsible for Yesterday’s Hack? Will the SEC be ...

Grayscale CEO Speaks After Spot Bitcoin ETF Approval! Here are their first statements!

Join our free newsletter for daily crypto updates!