Veteran Bitcoin investor Pumpius has described Ripple’s latest corporate move as a powerful signal for the future of XRP.
He argues that the company’s strategy could significantly strengthen its long-term position in the digital asset ecosystem.
The reaction follows reports that Ripple has launched a major share buyback program that values the company at roughly $50 billion. The firm is seeking to buy back approximately $750 million in shares from employees and investors via a tender offer that runs until April.
Key Points
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Veteran investor Pumpius calls Ripple’s $750M share buyback the “ultimate power move” that could strengthen XRP’s long-term outlook.
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Ripple plans to repurchase shares through April, valuing the company near $50B and reinforcing its position in crypto.
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The valuation marks a 25% jump from Ripple’s $40B round, even as XRP has fallen more than 60% since the October peak.
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Critics argue Ripple’s rising valuation may not directly benefit XRP holders, fueling debate across the crypto community.
Investor Calls Ripple’s Buyback a “Power Move”
In his tweet, Pumpius framed the buyback as a strategic move that could benefit XRP holders. According to the investor, the buyback highlights Ripple’s confidence in its long-term control and influence over the XRP ecosystem.
In his view, spending hundreds of millions of dollars to buy back equity signals that the company believes its exposure to the digital asset could be worth far more in the future.
Pumpius described the strategy as the “ultimate power move” for XRP supporters. He argues that Ripple sees greater long-term upside in maintaining influence over XRP rather than liquidating large portions of its holdings.
The program also locks in a significantly higher corporate valuation for the company. This also reinforces its position among the most valuable firms in the crypto industry.
Valuation Climbs Despite Crypto Market Slump
The buyback represents a 25% jump in valuation from the $40 billion Ripple attained in its last November funding round. That round raised $500 million from major financial firms, including Pantera Capital, Brevan Howard, Galaxy Digital, and Marshall Wace.
The higher valuation is notable given the broader market downturn. Since the October market peak, XRP has experienced steep declines of over 60%.
Even so, Ripple continues to expand its business aggressively. The company recently acquired the prime brokerage platform Hidden Road and the treasury management firm GTreasury as it builds institutional infrastructure for digital assets.
Critics Question Whether XRP Holders Benefit
Despite the optimism from some investors, the buyback announcement has sparked debate within the crypto community.
Some commentators argue that Ripple’s rising corporate valuation may not automatically translate into gains for XRP holders.
Critics claim the company could be selling XRP to fund corporate expansion or equity buybacks, allowing institutional investors to benefit through company shares while retail traders provide liquidity in the token market.
Ripple recently moved 200 million XRP, worth roughly $280 million, shortly after unlocking 1 billion XRP from escrow earlier in the month. Although some of these transfers are internal movements, they frequently trigger speculation about potential token sales.
As Ripple expands its financial infrastructure and corporate position, the key question is whether that growth will directly increase XRP’s value. Supporters see the buyback as confidence in XRP’s long-term ecosystem. Meanwhile, critics say the link between Ripple’s success and XRP’s price remains unclear.
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.
