Ripple Plans To Buy Back Shares

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Ripple Plans To Buy Back Shares

Ripple Plans To Buy Back Shares Worth $285 Million

Ripple Labs, the firm behind the XRP coin, has recently announced a plan to buy back its shares worth around $285 million. The company will buy these shares from the employees and early investors.

The company also shared a tender offer in which it valued Ripple Labs at around $11.3 billion. As per the regulations, the investors of Ripple Labs can only sell about 6% of their total stakes.

When Ripple was approached for comments, they confirmed the rumours and shared that they would spend nearly $500 million. This will be used to pay taxes and convert the restricted stock units into shares.

Ripple Labs Valued At $11.3 Billion

Ripple Labs also announced that it will engage in buyback programs a lot more from now on! They also added that this move will allow the investors of the Ripple Lab access to liquidity. When asked about going public in the USA, they declined by citing regulatory uncertainty.

Ripple Labs has more than $1 billion in cash holdings, and its crypto holdings are worth $25 billion. Most of these cryptocurrencies on Ripple Labs' balance sheet are 'XRP Coins.'

The timing of this tender offer is essential as it was announced right after winning the battle against the SEC. During the verdict, the judge ruled that selling XRP can't be regarded as offering unregistered securities.

Ripple Labs has been around since 2012 and actively facilitates cross-border transactions. The company offers these services with the help of XRP & and wants to revolutionize how money is moved worldwide.

The company also added that 95% of its customers are from somewhere other than the USA. As for how much money is involved in the payment business, Ripple Labs declined to comment.

When checked last time, the market cap of XRP was worth around $30 billion, making it one of the top cryptocurrencies.

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