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HomeCrypto NewsMarket'Who Is Going to Buy This Much XRP' Bitcoin Analyst Fires Back on Ripple’s Reported $20B Bid for Circle

‘Who Is Going to Buy This Much XRP’ Bitcoin Analyst Fires Back on Ripple’s Reported $20B Bid for Circle

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Ripple’s rumored interest in acquiring Circle, the issuer of USDC, has ignited a heated discussion from Bitcoin pundits.

Questions are swirling over whether Ripple would need to liquidate a significant portion of its XRP holdings to fund the deal.

With rumors suggesting Ripple is exploring a deal valued between $10 billion and $20 billion, market watchers like Bitcoin analyst Dave Weisberger have raised concerns about the implications. At the XRP Las Vegas event, he posed a major question:

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“If Ripple is planning to acquire Circle, how exactly would it raise the necessary funds, especially if it involves selling billions of dollars’ worth of XRP?”

Notably, Ripple controls roughly 40% of the total XRP supply, most of which is in escrow but released monthly.

Weisberger has pointed out that if Ripple turns to its XRP holdings to finance an acquisition, it could face serious market liquidity challenges. Given the potential size of the deal, even offloading a fraction of that XRP could exert downward pressure on the asset’s price.

“Who is going to buy this much XRP?” Weisberger asked, referring to Ripple’s ability to raise up to $20 billion for the acquisition.

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Furthermore, he argued that securing loans backed by XRP might not be feasible under current market conditions. In his view, that leaves Ripple with limited options, unless Circle or its investors accept an alternative form of value, such as company equity or XRP itself.

Alternative Financing Scenarios for Ripple

Meanwhile, pro-XRP attorney Fred Rispoli presented a different perspective. He argued that Ripple could likely structure the deal without relying heavily on XRP sales.

Based on current secondary market interest in Ripple’s private shares, he believes the company could finance the acquisition through a mix of available cash, debt, and equity.

Rispoli also questioned the rumored $10–$20 billion price tag, pointing to more recent private research suggesting Circle’s valuation could be closer to $7–$9 billion. That lower price point would make the acquisition more feasible without causing disruption in the XRP market.

Furthermore, Rispoli noted that Ripple likely holds between $1 billion and $3 billion in cash, which could form the foundation of a structured deal, especially if Ripple issues private shares or partners with crypto-aligned sovereign wealth funds for debt financing.

However, Weisberger remained skeptical that Ripple could close such a large deal without liquidating XRP. He questioned whether Circle’s leadership would accept a deal based primarily on stock or XRP at face value.

He emphasized that unless Circle is open to alternative deal structures, Ripple would still need to come up with actual cash.

Without external financing or Circle’s willingness to accept non-cash instruments, XRP holders could be left facing the prospect of Ripple becoming a large-scale seller in the market.

Circle Sale Rumors Clarification 

It’s worth noting that stablecoin issuer Circle has denied reports of a potential sale to crypto firms Coinbase or Ripple. A spokesperson refuted claims of ongoing discussions, calling them inaccurate and reaffirming the company’s commitment to its long-term goals.

The denial follows a Fortune report suggesting Circle was exploring a $5 billion sale, aligning with its IPO valuation target. Since then, speculations have surfaced about an upward revision of the bid.

While Circle still aims to go public, its IPO—first announced in December 2022—has faced multiple delays. The company relaunched its plans in January 2024 and has recently selected underwriters, though no date has been set.

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.

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Abdulkarim Abdulwahab
Abdulkarim Abdulwahabhttp://thecryptobasic.com
Abdulkarim Abdulwahab is a seasoned crypto journalist who has established himself as a trusted voice in the world of blockchain and Web3. His extensive knowledge of the crypto space enables him to break down complex concepts into accessible language.

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