Blockchain-based global payments processor Ripple cited a healthy balance sheet and doubling of its payments business as it announced a buyout of its Series C investors, at $15 billion valuation.
Ripple, the multi-billion-dollar payments processor recently announced that it has repurchased shares from its Series C investors who had provided $200 million funding to the company, during the Series C round held in Dec 2019.
The buyout is at a company valuation of $15 billion, considerably higher than $9.8 billion valuation it received for the Series C. This development is being viewed as a bullish sign as it makes Ripple (XRP) look highly optimistic about its future prospects, despite an ongoing legal tussle with SEC. It has been reportedly giving the government agency a really tough time, and may actually be on the verge of a landmark win.
Ripple’s CEO Brad Garlinghouse made the news public via a series of tweets earlier today.
Repurchase on the back of solid growth and healthy balance sheet
As per a company spokesperson, Ripple bought out its Series C investors with cash on hand and has $1 billion in the bank. The spokesperson said that the repurchase is a testimony of, “our extremely strong position in the market,” and further added, “Ripple is cash flow positive, has $1B in the bank and a strong balance sheet.”
The company termed 2021 as its best performing year till date, stating that it doubled its business volume within the year. Furthermore, Ripple’s ‘on demand liquidity’ business expanded to 22 markets, from just 3 in 2020. All these accomplishments were highlighted in a company statement which read, “The buyback places Ripple’s new valuation at $15B and reflects Ripple’s strong position in the market and global company momentum – Ripple’s global business has grown exponentially and 2021 was the company’s best year to date.”
Interestingly, the Series C investors whose shares have been bought back include Tetragon Financial Group that filed a lawsuit against Ripple in 2020, in an unsuccessful attempt to withdraw its investment, after SEC took Ripple to court.
XRP was trading at $0.62 at the time of writing, showing a bullish trend and pushing towards resistance levels at $0.67 (FIB 0.236) and $0.75 (FIB 0.382). A possible uptrend is definitely on the cards as RSI is just emerging out from the oversold territory.
XRP/USD Daily Chart. Source: TradingView