XRP News Today: Ripple Faces Debate Over Potential Circle Acquisition Impact on XRP Market

Ripple Labs, the company behind the cryptocurrency XRP, has found itself at the center of a heated debate following comments made by CoinRoutes chief executive Dave Weisberger. During an appearance on Scott Melker’s podcast, Weisberger questioned whether Ripple could finance a potential takeover of Circle, the issuer of the stablecoin USDC, without significantly offloading its XRP holdings. Weisberger suggested that Ripple might need to sell approximately $10 billion worth of XRP to fund such an acquisition, raising concerns about the potential impact on the XRP market.

Weisberger’s remarks sparked a swift response from pro-XRP attorney Fred Rispoli, who took to X to challenge the notion that Ripple would need to sell a substantial amount of XRP. Rispoli argued that Ripple could afford the acquisition through a combination of cash, debt, and an equity swap, without having to sell a significant portion of its XRP holdings. He cited private research valuations that placed Ripple at $15 billion, excluding its escrowed XRP, and suggested that if Circle’s price tag were lower, Ripple could close the deal with minimal XRP sales.

Ripple’s financial position was further scrutinized, with Weisberger acknowledging the potential for short-term pain for XRP holders if the acquisition were to proceed at the upper end of Rispoli’s valuation range. Ripple’s tender-offer buyback in January 2024 valued the company at $11.3 billion, with over $1 billion in cash and about $25 billion in digital assets, mostly XRP, on its books. The firm controls roughly 52 billion XRP, with 36 billion in timed escrow releases, limiting immediate access. At the current spot price of $2.20, the spendable portion is worth a little under $35 billion. However, moving even a fraction of this quickly could collide with thin venue depth, a point Weisberger emphasized.

Ripple’s recent acquisition of prime broker Hidden Road for $1.25 billion, settled with a blend of cash, equity, and RLUSD stablecoins, suggests the company’s preference for hybrid structures. This acquisition supports Rispoli’s claim that Ripple’s Treasury XRP need not flood the market. However, even under Rispoli’s optimistic structure, Ripple might still need to liquidate several hundred million dollars’ worth of XRP for working capital and closing costs. At current volumes, unloading just 500 million XRP (≈ $1.1 billion) would equal half a week of global turnover—enough to distort price unless executed as private blocks.

The debate over Ripple’s potential acquisition of Circle may be academic, as Circle has repeatedly declared it “not for sale” while marching toward a New York Stock Exchange listing. Ripple’s rumored approach earlier this spring reportedly topped $5 billion, well below Weisberger’s stress case and within Rispoli’s “doable” band, but Circle rebuffed the talks and updated its S-1 two weeks later, enlarging the float rather than seeking a buyer. Strategically, Ripple already fields its own dollar-token RLUSD, launched in January and positioned by president Monica Long as “complementary to XRP, not a competitor.” Absorbing USDC’s issuer would instantly rocket Ripple towards the size of Tether.