Ripple Labs Launches $750 Million Share Buyback Program
Ripple Labs has recently announced the initiation of a share buyback program, aiming to value the company at approximately $50 billion. This move solidifies Ripple’s position as one of the leading firms within the digital asset industry.
As reported by Bloomberg, the program involves repurchasing up to $750 million in shares from early investors and employees through a tender offer that is expected to extend until April.
Back in November, Ripple successfully raised $500 million at a $40 billion valuation from investors such as Citadel Securities and Fortress Investment Group. The company has also been actively pursuing acquisitions to diversify its offerings beyond payments infrastructure, venturing into brokerage and stablecoin services. Notably, Ripple recently acquired Hidden Road for a hefty sum of $1.25 billion.
This buyback initiative follows a previous attempt by Ripple to repurchase around $1 billion worth of shares at a $40 billion valuation, which reportedly saw limited participation from employees and investors, according to a report by The Information.
The current tender offer comes at a time when the crypto market is experiencing a downturn, with Bitcoin witnessing a more than 45% decline from its peak in early October and XRP dropping by over 50% during the same period. At present, Bitcoin is trading near $70K, showing a modest 1% increase, while XRP is valued at around $1.40, also up by approximately 1% at the time of reporting.
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