The firm behind XRP Ledger, Ripple Labs, has announced a $700 million tender offer to repurchase 3-5% of its equity at $175 per share, marking a significant 135% premium over the last traded price of $74-75 on the Hyve platform.
In the latest email Ripple Labs sent to its existing shareholders on June 10—shared on X by Jeremy Raper—CEO Brad Garlinghouse announced the $700 million tender offer, with the company intending to buyback vested stock options and shares at a price of $175.
Amid the anticipation around Ripple IPO, the move has sparked excitement and speculation about the company’s financial health and future plans.
This initiative follows a January 2025 buyback at $125 per share, signaling a sharp rise in Ripple’s perceived valuation. With an estimated 141 million shares outstanding, the $175 price implies a $25 billion valuation of the company. This mammoth amount—more than 3X of Circle—aligns with Ripple’s robust balance sheet, bolstered by a $1 billion cash reserve and a $25 billion crypto portfolio, predominantly by XRP.
The buyback, open until July 9, 2025, underscores Ripple’s strong market position, though its long-term strategy remains under scrutiny as its legal scuffle with the U.S. SEC continues.
How Does This Move Affect XRP Price?
While the $700 million buyback directly involves Ripple’s private shares and not XRP itself, the tender offer by Ripple Labs is likely to have a nuanced impact on XRP price. However, the move could signal a strong confidence and a potential revaluation of the company, which could indirectly boost investor sentiment toward XRP.
On a clearer note, the tender offer uses Ripple’s cash reserves rather than XRP holdings. Yet, if the $175 share price reflects a $25 billion company valuation—implying a significant premium over current XRP-based valuations—some investors might question the disconnect between Ripple’s private equity and XRP’s market performance.
The success of this buyback and any subsequent corporate moves, such as an IPO, will hinge on Ripple’s ability to expand its global payment network, which relies heavily on XRP adoption.
Also read: XRP will Hijack 14% of SWIFT Volume: Ripple CEO Brad Garlinghouse
