Svmuu News: According to informed sources, blockchain payment company Ripple has initiated a share buyback plan of up to $7.5 billion, valuing the entire company at approximately $50 billion.
The buyback will be conducted through a tender offer, allowing investors and company employees to sell their shares back to the company. This buyback plan is expected to last until April this year. Bloomberg was the first to report this news.
This buyback plan follows Ripple's attempt in October last year to repurchase $1 billion in shares at a $40 billion valuation. At that time, participation was relatively limited as some private equity shareholders were unwilling to sell their shares.
Ripple's most recent financing occurred in November last year, when the company completed a $500 million strategic financing round, also at a $40 billion valuation. That round was led by funds related to Fortress Investment Group and Citadel Securities, with participation from institutions such as Pantera Capital, Galaxy Digital, Brevan Howard, and Marshall Wace.
Ripple President Monica Long stated earlier this year that the company currently has no plans for an IPO and emphasized that Ripple's financial situation is robust, preferring to continue expansion through mergers and acquisitions and product development.