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HomeCrypto NewsMarketRipple on the Verge of Buying Back $1.4B in Stock as IPO Looms: Brad Garlinghouse

Ripple on the Verge of Buying Back $1.4B in Stock as IPO Looms: Brad Garlinghouse

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The Ripple CEO Brad Garlinghouse says Ripple is on the verge of buying back up to $1.4 billion in its own stock from investors, as IPO looms.

Garlinghouse disclosed this while recently speaking at the Fortune Brainstorm Tech Conference in Utah. The Ripple CEO discussed several issues surrounding his firm and the broader crypto industry. These discussions centered on regulatory efforts such as MiCA, the SEC lawsuit, Ripple’s IPO plans and other issues.

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Garlinghouse first emphasized the regulatory setback triggered by the SEC’s lawsuit, which has lingered since December 2020. Seeking confirmation, Fortune Magazine presenter Andrew Nusca implied that the current legal and regulatory pressure over Ripple is behind the delays around the company’s plans to go public.

SEC Lawsuit Behind IPO Delays

In response, the Ripple CEO confirmed this. Recall that Garlinghouse has stressed in previous interviews that the company is not looking to go public yet. Six months ago, The Crypto Basic reported on a $285 million buyback of Ripple’s stock. However, Garlinghouse told Reuters that the buyback does not translate to an imminent IPO plan.

Speaking to Nusca during the Fortune Tech conference, the Ripple CEO remarked: 

“We have publicly said that we don’t have any imminent plans to try and go public. I mean, why would you? You have in the current SEC […] I’m not very popular inside the walls of the SEC.”

However, he emphasized that the lingering lawsuit does not border on XRP’s regulatory stand. According to Garlinghouse, XRP received clarity when Judge Analisa Torres ruled that it is not a security last July. He noted that only XRP and Bitcoin have this level of clarity in the United States.

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Ripple on the Verge of Buying Back $1.4B in Shares

Meanwhile, Garlinghouse stressed that in terms of liquidity, he does not see going public as Ripple’s ultimate goal. Instead, he views it as a step toward the ultimate goal. Interestingly, Ripple has continued to buy back its shares from investors despite not planning to go public soon.

The CEO revealed that the company has been carrying out several tender offers to repurchase these shares from employees and investors. According to him, they are currently undergoing a tenure offer, which, when completed, will lead to a total buyback of $1.4 billion in stock.

In his words:

“We have done a series of tender offers, where we’ve been buying shares back from investors and employees. Now, we’re in the middle of another tender offer. After we finish this, we will have repurchased $1.4 billion in stock from our shareholders.”

This disclosure has triggered multiple reactions from the Ripple and XRP communities. Notably, community commentators emphasize that this high figure confirms Ripple’s willingness to bet big on its future success. This helps bolster confidence in the company’s trajectory.

DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.

Author

Sam Wisdom Raphael
Sam Wisdom Raphael
Sam Wisdom Raphael is a seasoned crypto news writer and journalist with 5 years of experience covering blockchain, DeFi, and crypto developments. Sam's active presence in the crypto community complements his deep understanding of the crypto space, allowing him to craft comprehensible price analysis reports and tackle technical blockchain concepts.

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