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Ripple Is Buying Back Shares From Investors


RobertHarpool
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In my experience, a company buys its own shares because their analysis shows that to be the most profitable return for their money given all of the other investment opportunities in different company's stocks, bonds, commodities, currencies, etc. 

Like @NMNR said, extremely bullish. 

 

The message between the lines is: 

 

Dear SEC, 

Hold my beer, the rest of the world is calling.

Regards,

Ripple 

 

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i don't think so, 

I think it means they have bought back the stocks based on Ripple company current valuation of 15 billion compared to the 10 billion it was valued at when the stocks were first issued.

meaning they received more back than they invested, am I close?

thus appeasing the unhappy investors, tetragon & the like

Edited by paym8
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2 minutes ago, paym8 said:

i don't think so, 

I think it means they have bought back the stocks based on Ripple company current valuation of 15 billion compared to the 5 billion it was valued at when the stocks were first issued.

meaning they received more back than they invested, am I close?

Yeah, I had to re-read it. That's what I get for trying to work and keep up with what's gong on in crypto at the same time.

Edited by King34Maine
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27 minutes ago, paym8 said:

i don't think so, 

I think it means they have bought back the stocks based on Ripple company current valuation of 15 billion compared to the 10 billion it was valued at when the stocks were first issued.

meaning they received more back than they invested, am I close?

thus appeasing the unhappy investors, tetragon & the like

I understood it as buying back Tetragon’s equity because of the bad blood between them as the motivation. They may have gotten more, but that is because they significantly grew their business. The 50% profit really is only applicable for those who participated in the 2019 round. The ones who invested early (like SBI, Andreesson Horowitz etc) have seen several times that. See my post below on pre-2019 valuation.

Edited by Ripley
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2 hours ago, RobertHarpool said:

This is definitely an usual move by Ripple ... for any company, let alone a company that isn't publicly traded, and something I've never heard of for a 'startup' ... 

“Even after doing this repurchase, we have over a billion dollars in cash." Garlinhouse said. 

According to this report, Ripple secured funding at a $10B valuation in 2019, and has bought back at a $15B valuation. The 50% gain and buyback likely soothed any bad blood from Tetragon's (relatively) recent court actions. 

Very interesting. 

On a side note, it's good to know they can keep up the good fight with the SEC. 

It’s a 50% profit for 2019 investors, and I think you are right about the motivation. But the article is really referring to institutional investors.

The valuation pre-2019 funding was 3.4B. Retailers who bought in secondary markets like EquityZen before the 2019 round made a ~500% profit :) I’m sure there are some of those lurking in these forums.

And that’s the company’s valuation. Depending on how strong their cash flows are, when they go IPO, they are likely to trade in multiples of that.

PS: Obviously the valuation (correctly) doesn’t count their XRP holdings.

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19 minutes ago, RobertHarpool said:

 Lot of loose pronouns bouncing about ... 

So, @Ripley, ur saying that Ripple returned Tetragon's initial investment from 2019 at 150% just for good will? 

That was allegedly $175M funding from Tetragon ... So Ripple just gave T an extra $87M? 

How sweet of Ripple :-) 

Tetragon filed that lawsuit. My reading is that while Ripple did win the lawsuit, they didn’t want to have anything to do with Tetragon anymore, and certainly not on the board. I’d imagine filing the lawsuit triggered an exit clause and Ripple was able to buy back those shares. 

Edited by Ripley
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56 minutes ago, Ripley said:

Tetragon filed that lawsuit. My reading is that while Ripple did win the lawsuit, they didn’t want to have anything to do with Tetragon anymore, and certainly not on the board. I’d imagine filing the lawsuit triggered an exit clause and Ripple was able to buy back those shares. 

Brad just confirmed that this was just Series C shares. Definitely about booting Tetragon off the board I think. SBI also may have participated in that round so that’s a nice bonus for them. Of course they must also be holding older and more valuable equity.

 

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5 hours ago, RobertHarpool said:

Insightful thots, all @Ripley

i know SBI was an earlier round. Two b4 if my memory is good. 

You’re right about SBI being an earlier investor. But they also participated in Series C.

 

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