Ripple Launching $285 Million Share Buyback, Valuing Company At $11 Billion

Ripple will repurchase $285 million worth of shares from early investors, with the company’s valuation reaching up to $11 billion.

Ripple Labs, the company behind the cryptocurrency project Ripple, will carry out a stock repurchase from early investors worth up to $285 million. The deal will see the company’s valuation declared at $11.3 billion.

Investors under the deal will only be able to sell 6% of the total Ripple shares they hold.

Ripple CEO Brad Garlinghouse has previously declared that he would repurchase shares to provide liquidity for investors, but not take the company public in the US due to legal concerns. The company is currently expanding its operations into Asia and Africa.

In 2021, Ripple faced a lawsuit from the U.S. Securities and Exchange Commission (SEC), alleging the sale of over $1.3 billion in XRP tokens without proper registration. After a prolonged legal battle, in July 2023, a U.S. court ruled that not every XRP transaction by Ripple falls under the category of securities—a preliminary victory for the company against the SEC.

Though, Ripple and the SEC are set to return to court in April 2024 to resolve remaining disputes.

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