Ripple Labs has unveiled its intention to conduct a share repurchase, or tender offer, valued at $285 million, targeting initial investors and staff members.
This move places the company’s valuation at an impressive $11.3 billion. According to sources from Reuters, participants in this tender offer are restricted to selling a maximum of 6% of their holdings.
In alignment with this initiative, the privately held firm has allocated $500 million for the share repurchase. The primary objective behind this significant investment is to cover expenses related to meeting tax obligations and the conversion of restricted stock units into shares.
ICYMI: @Ripple Labs makes waves with a jaw-dropping $285 million share buyback! This strategic move, known as a tender offer, features investor restrictions, limiting stake sales to 6%. Read more on our website: #Ripple #CryptoNews #Investinghttps://t.co/gMqkPTjEKa
— BSCN (@BSCNews) January 13, 2024
The announcement of the share repurchase aligns with the current dynamics in the market, notably influenced by developments in Bitcoin (BTC) and BTC-spot ETFs. The news surrounding BTC-spot ETFs has triggered heightened demand for Bitcoin and other cryptocurrencies. This surge in interest has sparked discussions about the potential expansion of the broader crypto-spot ETF market.
Grayscale Adds Ripple XRP In Digital Large Cap Fund
Adding an intriguing layer to the unfolding narrative, Grayscale recently included XRP in its Digital Large Cap Fund (GDLC), fueling speculations about the potential introduction of an XRP-spot ETF.
Ripple CEO Brad Garlinghouse has affirmed that the company holds over $1 billion in cash, coupled with cryptocurrency assets exceeding $25 billion, with a significant portion represented by XRP tokens.
As of now, the sixth-largest cryptocurrency, XRP, is trading at $0.5726, registering a modest 4% decline in the daily chart. Ripple’s strategic move with the share repurchase reflects its proactive stance amid evolving market dynamics and the broader landscape influenced by cryptocurrency developments.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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