- Ripple has repurchased over 25% of its outstanding shares in recent years and continues to attract institutional demand.
- On the other hand, after the XRP lawsuit settlement, Ripple also made some strategic acquisitions, including Palisade, Hidden Road ($1.25B), Rail ($200M), and GTreasury ($1B).
Blockchain firm Ripple has raised a staggering $500 million led by institutional investors like Fortress and Citadel, at a staggering $40 billion valuation. The official press release noted that other big institutional players such as Pantera Capital, Galaxy Digital, also participated in the fundraising.
The investment comes after Ripple’s strongest year on record and its recent $1 billion tender offer at the same valuation. Besides, it also highlights confidence in the company’s growth prospects and long-term strategy.
Ripple Strengthens Investor Ties With $500 Million Fundraise
Ripple, amid its strongest year of growth to date, reaffirmed its focus on providing liquidity for shareholders and employees. The company has repurchased over 25% of its outstanding shares in recent years. This has also helped in delivering substantial returns to employees and early investors.
Ripple’s latest tender offer drew strong institutional interest, with many investors seeking to join its cap table. The company’s decision to accept $500 million in new common equity underscores its strategy to strengthen partnerships with financial firms that align with Ripple’s future goals and roadmap. Speaking on the development, Ripple CEO Brad Garlinghouse said:
“This investment reflects both Ripple’s incredible momentum, and further validation of the market opportunity we’re aggressively pursuing by some of the most trusted financial institutions in the world. “We started in 2012 with one use case – payments – and have expanded that success into custody, stablecoins, prime brokerage and corporate treasury, leveraging digital assets like XRP. Today, Ripple stands as the partner for institutions looking to access crypto and blockchain.”
XRP Firm On A Major Acquisition Spree
Following the settlement of the XRP lawsuit earlier this year, blockchain firm Ripple has been on a major acquisition spree, and has been buying companies across the board. In the latest development, the company announced the acquisition of wallet platform Palisdale, as reported by CNF.
This acquisition will support Ripple’s integration into its next-generation custody and payments infrastructure, enabling the company to deliver secure, enterprise-grade solutions for institutions worldwide.
In April, the company acquired prime brokerage firm Hidden Road for $1.25 billion to expand its institutional services and enhance access to a wider range of cryptocurrencies in the U.S. This was followed by the $200 million acquisition of Canadian stablecoin platform Rail in August.
Most recently, two weeks ago, the firm finalized a $1 billion purchase of treasury management provider GTreasury, further strengthening its foothold in institutional blockchain finance.
