Ripple Labs Announces $700 Million Share Repurchase at $175 Each
Ripple Labs Inc. plans to repurchase shares at $175 each, launching a $700 million tender offer from June 10 to July 9. This represents a 135% premium over recent trading prices of $74-$75 on Hyve.
Key Details
- The offer aims to buy back 3-5% of the company.
- Ripple's valuation is projected at approximately $25 billion based on this share price.
- Ripple holds $3.7 billion in cash, no debt, and 41 billion XRP, valued around $94.6 billion at market value.
- 36.2 billion XRP are in escrow; the remaining are available for use.
- Ripple also has $600 million in other investments and reported about $1 billion in EBIT last year.
The tender offer may facilitate a future IPO, but Ripple has stated it will not pursue this option soon, focusing instead on acquiring complementary companies.