Wednesday, June 19, 2024
HomeCryptocurrencyBrad Garlinghouse Updates Ripple IPO Status in the U.S.

Brad Garlinghouse Updates Ripple IPO Status in the U.S.

Amid the legal battle with the U.S. Securities and Exchange Commission (SEC), Ripple, the crypto payments giant, has seemingly put a stop to Initial Public Offering (IPO) rumors.

The company has dropped a $500 million bombshell in the form of a share buyback program aimed at bolstering investor confidence and providing much-needed liquidity.

This strategic maneuver, confirmed by CEO Brad Garlinghouse, sends a clear message that Ripple is here to stay, and it’s betting big on its future.

Read Also: “Are you asleep at the wheel again?” Ripple CEO Asks YouTube As He Explains Trending Scam Video

Ripple Announcement

According to a recent report from Reuters, the $285 million earmarked for repurchase specifically targets early investors and employees, with individual sell-offs capped at 6%. This tender offer sets Ripple’s market cap at $11.3 billion, painting a good picture of the company’s financial strength.

This valuation is particularly impressive considering its ongoing legal battle with the SEC. Ripple has also confirmed that it will spend $500 million to cover the costs involved with the buyback program.

Beyond the headline figures, Ripple boasts an impressive $25 billion in crypto holdings, buttressed by $1 billion in cash.

XRP, Ripple’s native token, takes center stage, with a significant portion strategically locked in escrow, with Ripple meticulously controlling its circulating supply.

Every month, Ripple releases 1 billion XRP from this escrow pool, carefully locks away 80%, and sells the remaining 200 million XRP on exchanges to cover operational expenses.

Read Also: Ripple CEO Garlinghouse Discusses Next Action In XRP Lawsuit

What Will Happen to the IPO?

The buyback announcement stirred up IPO rumors again. An IPO will be a massive financial move for Ripple, with effects felt by XRP. Many expect it to send XRP skyrocketing, with a Wall Street Veteran recently listing the IPO as one of five factors that would signal an Impending XRP surge.

Garlinghouse, however, refuted these rumors. He stated that Ripple would not go public anytime soon, attributing the bad news to regulatory uncertainty in the U.S.

<

Is the buyback program a prelude to an IPO down the line? Not necessarily. Instead, Ripple seems laser-focused on consolidating its market dominance, and according to the Report, the company will do more share buybacks, intending to make it a regular occurrence to provide liquidity for investors.

With the IPO on hold, all hope is not lost for XRP. News of an XRP ETF has also been making the rounds, and a top crypto figure recently predicted when BlackRock would apply for an XRP ETF.


Follow us on Twitter, Facebook, Telegram, and Google News

Tobi Loba
Tobi Loba
Tobi Loba is a passionate writer with a vast interest in the stock market. She joined the crypto ecosystem about three years ago and has written lots of ebooks and articles in relation to cryptocurrency and blockchain projects. Tobi Loba earned her degree at the University of Ibadan.
RELATED ARTICLES

Latest News & Articles