Ripple CEO Brad Garlinghouse Shares Update On IPO

Amid swirling rumors of an IPO and the lawsuit with the U.S. Securities and Exchange Commission (SEC), Ripple, the crypto payments giant, has seemingly put a stop to 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: Wall Street Veteran Forecasts Timeline For Ripple IPO

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 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 on exchanges to fuel operational needs.

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 an IPO to send XRP skyrocketing, with a Wall Street Veteran recently listing the IPO as one of five factors for a massive surge in XRP price.

Read Also: As Ripple IPO Speculation Continues, Another Crypto Behemoth Is About To Go Public

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.

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