Ripple, the company behind the XRP cryptocurrency, is considering a significant stock buyback program valued at $1.4 billion, according to CEO Brad Garlinghouse. This news comes amidst ongoing delays surrounding Ripple’s initial public offering (IPO).
Garlinghouse revealed the potential buyback plan during a recent appearance at the Fortune Brainstorm Tech Conference in Utah. While discussing various topics impacting Ripple and the crypto industry, including regulations and the ongoing SEC lawsuit, the CEO shed light on the company’s financial strategy.
SEC Lawsuit Hinders IPO Plans
While Ripple has previously explored going public, Garlinghouse acknowledged the ongoing legal battle with the Securities and Exchange Commission (SEC) as a major factor postponing the IPO. The SEC lawsuit, which began in December 2020 and alleges XRP is an unregistered security, has cast a shadow over Ripple’s public offering aspirations.
“We have publicly said that we don’t have any imminent plans to try and go public,” Garlinghouse stated at the conference. He further emphasized the challenges presented by the SEC, stating, “You have in the current SEC […] I’m not very popular inside the walls of the SEC.”
XRP Not Impacted by Legal Hurdles
Despite the SEC lawsuit impacting Ripple’s IPO plans, Garlinghouse reassured listeners that the legal battle does not affect XRP’s regulatory status. He highlighted the July 2023 ruling by Judge Analisa Torres, which clarified that XRP is not a security – a distinction currently held only by XRP and Bitcoin in the United States.
Focus on Long-Term Growth
While an IPO remains on the table, Garlinghouse suggests it’s not Ripple’s primary objective. The company prioritizes long-term growth and has been actively repurchasing shares from investors and employees through tender offers. The current buyback program, upon completion, will see Ripple acquire a total of $1.4 billion worth of stock.
Also Read: XRP Soars 30% In 24hrs: Whales Accumulate Billions As Price Breaks $0.60 Barrier
“We have done a series of tender offers, where we’ve been buying shares back from investors and employees,” Garlinghouse explained. “Now, we’re in the middle of another tender offer. After we finish this, we will have repurchased $1.4 billion in stock from our shareholders.”
This significant buyback program has been met with enthusiasm within the Ripple and XRP communities. Many interpret this move as a strong signal of Ripple’s confidence in its future success, bolstering overall sentiment towards the company.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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