XRP News Today: Ripple Launches $700 Million Share Buyback at 135% Premium

Ripple has initiated a $700 million share buyback program, offering $175 per share. This move is anticipated to significantly influence investor sentiment towards XRP, potentially impacting its market price. The buyback offer is directed at Ripple equity holders and is available to eligible shareholders with vested stock options or shares, conducted via the Nasdaq Private Market. The offer price represents a 135% premium over Ripple’s most recent secondary market trading levels, where shares had last traded for approximately $74 to $75. This marks a substantial increase from the company’s previous buyback in January, which was priced at $125 per share, and the size of the program has also grown considerably.

Investor Jeremy Raper shared that Ripple’s $700 million buyback was announced through an internal communication from CEO Brad Garlinghouse. The offer opened on June 10 and will remain active until July 9. The buyback program targets equity holders, but its indirect impact on XRP could be significant. Ripple’s decision to spend $700 million buying back shares rather than allocating that capital elsewhere suggests a strong belief in the company’s current trajectory, including its XRP-related strategy. This may reassure investors who view XRP as closely tied to Ripple’s success, increasing their willingness to buy or hold the token.

Moreover, such a bold financial move can be interpreted as Ripple signaling that it believes both the company and its key digital asset are undervalued. As a result, traders may see this as a bullish sign and re-evaluate XRP’s potential price upside in the short to medium term. Ripple’s strong financial position appears to be a key factor enabling this buyback. According to internal disclosures, the company holds $3.7 billion in cash, carries no debt, and earned over $1 billion in EBIT last year. Ripple also holds approximately 41 billion XRP, of which 36.2 billion are in escrow and the remainder are liquid. At the current market value of $2.23 per XRP, this holding is worth around $94.6 billion, or $47 billion using a conservative discounted estimate.

With 141 million shares outstanding, the $175 share price implies a company valuation of about $25 billion. However, Raper estimates that Ripple’s balance sheet alone could justify a share price above $350, even when discounting certain assets. While the buyback is not a direct XRP event, the broader implications of Ripple’s financial stability and executive confidence could lead to increased market optimism. If that sentiment translates into action, XRP may experience upward pressure as a secondary effect of the share repurchase program.