Ripple CEO Affirms Absence of IPO Plans, Unveils $285M Share Repurchase Strategy

Ripple Labs, a prominent player in the cryptocurrency industry, has recently made an announcement regarding its intention to repurchase a significant number of shares valued at $285 million. The purpose of this buyback is to bolster investor confidence in the company’s financial stability.

According to Reuters, citing undisclosed sources, this tender offer, also known as the $150 buyback, places Ripple’s market value at an impressive $1.3 billion. Importantly, it allows for a controlled sale of partial ownership interests, enabling investors to divest up to 6% of their holdings in an orderly manner.

In order to dispel speculations about an initial public offering (IPO) in the United States, Ripple CEO Brad Garlinghouse clarified that the buyback offer does not indicate any immediate plans for an IPO. He cited regulatory uncertainties as the reason behind this decision.

Garlinghouse also provided details on how the company plans to utilize $500 million for the share repurchase. This amount will cover the conversion of limited stock units into shares and the taxes associated with this process.

Currently, Ripple boasts a strong financial position, with over $1 billion in cash and more than $25 billion in cryptocurrency, primarily in XRP coins. The majority of XRP stock is held in escrow, with a smart release plan implemented on a monthly basis.

This move by Ripple comes in the wake of a partial victory against the U.S. Securities and Exchange Commission (SEC). The court ruling declared that XRP is not a security, and therefore the sale of XRP does not fall under securities transactions.

Tags: Ripple (XRP)