Ripple intends to allocate $285 million for the buyback of shares from its early investors, valuing the fintech company at $11.3 billion. This information was published by Reuters, citing sources familiar with the situation.
According to the proposal, investors can sell up to 6% of their stake in the company.
Ripple representatives announced that they plan to allocate $500 million for the entire program, including expenses for converting limited rights securities into stocks and taxes.
The company's CEO, Brad Garlinghouse, noted that the company has funds in the amount of $1 billion in accounts and $25 billion in digital assets, primarily in XRP.
Brad Garlinghouse ruled out the possibility of conducting an IPO in the United States, citing regulatory uncertainty. He promised to increase the share buyback program and conduct it regularly.
The current offering became possible after Ripple partially won a case against the Securities and Exchange Commission (SEC) that had been ongoing since 2020.
In July 2023, Judge Analisa Torres ruled that software sales and other transactions involving XRP tokens did not constitute the sale of investment contracts. However, according to the court's decision, the distribution of this asset among institutional players in the industry violated securities laws.
Recall that in May, Ripple Labs reached an agreement to acquire the Swiss infrastructure company Metaco for $250 million.
Recently, Brad Garlinghouse, commenting on the X-account hack incident involving the SEC, suggested that the regulator conduct an investigation into its own actions.
