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:
“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.
Who is going to buy this much $XRP? pic.twitter.com/JwySpFd9GQ
— The Wolf Of All Streets (@scottmelker) June 2, 2025
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.
Well, as I said, no way to get $10B in cash. And I think $10B would be too high to pay as well. But: 2024 EOY valuation from a multitude of private research orgs pegged the company at $15B, which seems to imply exclusion of the escrowed $XRP (~36B). Also depends on what the…
— Fred Rispoli (@freddyriz) June 3, 2025
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.
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