Ripple announces 200 million share buyback and expresses optimism for 2022

Ripple announces 200 million share buyback and expresses optimism for 2022

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2022-01-30 21:28:22

The company acquired all Series C shares initially issued to Tetragon Financial Group, SBI Holdings and Route 66 Ventures in December 2019.

Blockchain payments company Ripple has announced a $200 million Series C stock buyback, a decision that will take the San Francisco-based technology company to a record high valuation of $15 billion. .

In December 2019, Ripple raised $200 million in a Series C funding round with Tetragon Financial Group, a UK-based investment firm acting as a lead investor alongside SBI. Holdings and Route 66 Ventures.

However, in December 2020, the US Securities and Exchange Commission launched a $1.3 billion financial lawsuit against Ripple Labs, as well as its co-founder Chris Larsen and CEO. executive Brad Garlinghouse, accused the parties of using the native XRP token as a digital unlicensed asset security.

With the intention of separating themselves from Ripple amid their public and well-known lawsuit, Tetragon sued Ripple in early January 2021 in the Delaware Chancery Court, seeking to fulfill the contractual obligations of the acquisition clause. for the value of the investment was not disclosed.

However, just three months later in April, the court ruled in favor of Ripple and against the plaintiff, Tetragon, ending the financial dispute.

In choosing to be willing to buy shares from Tetragon, SBI Holdings and Route 66 Ventures, it implies that Ripple is looking to enhance its financial strength, an opinion Garlinghouse dodged in a tweet thread. recently.

“Even with 2021’s troubles, it’s been our best record year yet,” he said, revealing that the company’s $1 billion bank balance makes it “the strongest we’ve ever seen.” we used to have.”

Along with the acquisition and valuation news, Garlinghouse also shares optimism for the future of RippleNet and Ripple X, the latter of which is set to enhance the utility of the XRP Ledger in a host of new areas. floating, which includes immutable tokens, central bank digital currencies, as well as interoperable, multi-span functions, among others.

When reaching out to Ripple to better understand their ambitions, a representative spokesperson stated that the decision to buy was made due to their “extremely strong position in the market”, citing that the company company has “positive cash flow” and has a “strong balance sheet.”

In addition, they noted that Ripple experienced its “best hiring year in 2021” and that it is now looking to attract “hundreds of employees globally this year” to support its 500-employee workforce. existing members.

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