Ripple‘s Whimsical $700 Million Share Buyback: A Tale of Cash and Giggles! 💰😂

Once upon a time in the bustling land of San Francisco, there lived a cheeky little company called Ripple Labs Inc. This sprightly firm decided it was time to play a game of “buyback,” offering a whopping $175 per share to its loyal stakeholders. And lo and behold, they announced a grand $700 million tender offer! What a splendid way to show off their financial muscles! 💪

From Peanuts to Posh: Ripple’s Share Price Soars! 🚀

In a rather jolly email, Ripple’s big cheese, Brad Garlinghouse, declared that the tender offer would kick off on June 10 and run for a whole month, closing on July 9 at 5 p.m. PDT. He was practically bursting with pride, boasting about how fabulously positioned Ripple is in the market. “Join the fun, dear shareholders!” he seemed to say, as he invited those with eligible stock options to join the merry sales party.

Now, here’s the juicy bit: the $175-per-share offer is a dazzling 135% premium over Ripple’s last trading price on platforms like Hyve, where shares were floundering around $74 to $75. Our dear friend, investor Jeremy Raper, who also received this delightful email, couldn’t help but chuckle at the news. “What a splendid surprise to wake up to!” he exclaimed, as he rubbed his hands together in glee. 🤑

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

Just a few months prior, in January, Ripple had offered a mere $125 per share. But now, they’ve cranked up the volume and the price! At $175 per share, Ripple’s imaginary treasure chest is valued at around $25 billion. Quite the leap, wouldn’t you say?

And how will this grand transaction be carried out, you ask? Why, through the magical realm of the Nasdaq Private Market, of course!

Ripple’s balance sheet is a sight to behold! With a staggering $3.7 billion in cash, no debts, and a whopping 41 billion XRP, their total hoard is valued at approximately $94.6 billion. Even if they decided to throw half of it away, they’d still be sitting pretty with $47 billion! Talk about a cozy nest egg! 🥚💸

But wait, there’s more! Ripple has a quirky little rule of locking a hefty chunk of its XRP in escrow at the start of every month. Currently, a staggering 36.2 billion XRP are tucked away safely, while the rest are ready for a spending spree!

With up to $600 million in other investments and a cheeky $1 billion in Earnings Before Interest and Taxes (EBIT) last year, Ripple is clearly not just playing around. They’re in it to win it!

Is Ripple’s IPO Just a Dream? 🌈

Now, this $700 million tender offer might just be the soft landing for an Initial Public Offering (IPO). But hold your horses! Ripple has made it clear that they won’t be exploring that shiny option anytime soon.

Amidst the legal tussle with the United States Securities and Exchange Commission (SEC), it seemed like an IPO was just around the corner. Even SBI Holdings CEO Yoshitaka Kitao was ready to pop the champagne! But alas, the plot thickened when Garlinghouse announced that they’re more interested in acquiring other companies than chasing IPO dreams. Oh, the twists and turns of corporate life! 🎢

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2025-06-12 18:42