In a move that can only be described as delightfully perplexing, Ripple Labs, the wizards behind the XRP Ledger, have decided to throw a staggering $700 million into the cosmic void of buybacks, repurchasing a mere 3-5% of their equity at a jaw-dropping $175 per share. This, of course, is a 135% premium over the last traded price of $74-75 on the Hyve platform, which is about as exciting as finding a towel in a spaceship’s emergency kit. 🛸
Not a bad email to wake up to… Ripple Labs buying back 3-5% of the co at $175/share… last traded prices on Hyve were $74-75, so a nice little 135% premium…
More thoughts to follow. I own Ripple (the co, not $XRP) outright, as well as derivative plays on Ripple…
— Jeremy Raper (@puppyeh1) June 10, 2025
As the world collectively holds its breath in anticipation of Ripple’s IPO, this audacious move has ignited a veritable bonfire of excitement and speculation about the company’s financial health and future plans. It’s like waiting for the next season of your favorite sci-fi series, only to find out it’s been canceled. 📺
This initiative follows a previous buyback in January 2025 at a mere $125 per share, signaling a meteoric rise in Ripple’s perceived valuation. With an estimated 141 million shares outstanding, the $175 price tag implies a mind-boggling $25 billion valuation of the company. This astronomical figure—more than three times that of Circle—aligns perfectly with Ripple’s robust balance sheet, which is as solid as a Vogon constructor fleet, bolstered by a $1 billion cash reserve and a $25 billion crypto portfolio, predominantly made up of XRP. 💰
The buyback, which is open until July 9, 2025, underscores Ripple’s strong market position, though its long-term strategy remains as clear as a foggy day on Betelgeuse, especially with its ongoing legal tussle with the U.S. SEC. ⚖️
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. It’s like trying to predict the weather on a distant planet—possible, but not exactly reliable. However, this move could signal a strong confidence and a potential revaluation of the company, which might just give investor sentiment toward XRP a much-needed boost. 🌌
To clarify, 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 find themselves scratching their heads in confusion, questioning 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. So, buckle up, folks! The financial universe is about to get a lot more interesting! 🌠
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2025-06-12 15:02