Crypto payments company Ripple Labs plans to buy back $285 million worth of its stock from early investors, valuing the company at $11.3 billion, according to a company spokesperson.
Early investors will only be able to sell up to 6% of their holdings, according to Reuters, which first reported the news, citing anonymous sources. Ripple plans to spend $500 million “to cover the cost of converting restricted stock units into stock and taxes,” Reuters also reported.
It is well known for using Ripple. XRP
+0.88%
Overseas expansion
Last October, Ripple celebrated the dismissal of all charges against its executives in an ongoing lawsuit filed by the Securities and Exchange Commission. Since then, efforts have been made to expand the business into Europe and Africa.
Garlinghouse also revealed that Ripple has more than $1 billion in cash on its balance sheet and more than $25 billion in digital asset cryptocurrencies, mostly made up of XRP coins.
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About the author
RT Watson is a senior reporter at The Block, covering a variety of topics including US-based companies, blockchain games, NFTs, and more. He previously covered entertainment for The Wall Street Journal and has covered companies including Disney, Netflix, and Warner Bros. and the creator economy, with a primary focus on technological innovation across media. Previously, she covered corporate, economic and political news in Brazil at Bloomberg. She interviewed a wide range of figures for RT, including CEOs, media moguls, top influencers, politicians, blue-collar workers, drug traffickers, and convicted criminals. She holds a Master’s degree in Digital Sociology.