Key Notes
- Ripple has announced a $700 million tender offer to repurchase stakeholders' shares.
- Each share will go for $175 against the $125 per share valuation as of January.
- This tender offer lays the ground for an IPO, but it is not certain that Ripple will explore it soon.
San Francisco-based Ripple Labs Inc. is preparing to repurchase shares from stakeholders at $175 per share. To this end, it has announced a $700 Mellon tender offer. This move reflects the company’s financial strength in the market and growth ambition, as seen in Ripple’s CEO, Brad Garlinghouse’s email to stakeholders.
Ripple Moves From $125 to $175 per Share
According to the email, the tender offer launched on June 10 and will run for one whole month, closing July 9 at 5 p.m. PDT. Brad Garlinghouse went on to talk about how well-positioned Ripple is now. He reinstated his confidence in the firm’s momentum and current trajectory. Members with eligible vested stock options or shares can participate in the sales.
The email clarified that the $175-per-share offer represents a 135% premium over Ripple’s most recent secondary market pricing on platforms like Hyve. These shares last traded at around $74 to $75 on Hyve. Prominent investor Jeremy Raper, who also received the email from the Ripple CEO, noted that the latest move is a strong sign of Ripple’s confidence in its growth trajectory.
Not a bad email to wake up to…Ripple Labs buying back 3-5% of the co at $175/share…last traded prices on Hyve were $74-75, so a nice little 135% premium…
More thoughts to follow. I own Ripple (the co, not $XRP ) outright, as well as derivative plays on Ripple… pic.twitter.com/OmTgTthRDI
— Jeremy Raper (@puppyeh1) June 10, 2025
In January, the blockchain payments firm made a similar tender offer at $125 per share. Comparing this previous offer to its new proposal, the company has significantly raised the price and size of its buyback. At $175 per share, Ripple’s implied valuation will be around $25 billion.
Meanwhile, the transactions will be facilitated via the Nasdaq Private Market.
Ripple’s balance sheet shows that the company holds $3.7 billion in cash, no debt, and 41 billion XRP. Altogether, this holding is valued at approximately $94.6 billion at market value. If it is discounted by 50%, the massive holding is still worth $47 billion.
Ripple has a rule of locking a significant percentage of its XRP in escrow at the beginning of every month. As a result, up to 36.2 billion XRP of Ripple’s holdings are now in escrow, while the remainder are in spendable balances.
The firm has up to $600 million in other investments and allegedly secured about $1 billion in Earnings Before Interest and Taxes (EBIT) last year, indicating strong operational profitability.
Is Ripple IPO Under Development?
It is worth noting that this $700 million tender offer creates a soft landing for an Initial Public Offering (IPO). However, Ripple has clarified it will not explore it anytime soon.
Amid Ripple’s lawsuit with the United States Securities and Exchange Commission (SEC), it looked like an IPO would follow . Even SBI Holdings CEO Yoshitaka Kitao stated that preparations for a Ripple IPO would begin soon after the final settlement of the SEC lawsuit.
However, the storyline changed recently when Garlinghouse announced that the company is more focused on acquiring complementary companies. He suggested that an IPO is not a priority for Ripple now.
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