Ripple’s $500M Share Sale Draws Wall Street Giants

• According to a Bloomberg report, Ripple raised $500 million from investors, including Citadel Securities and Fortress, valuing the firm at $40 billion.
• Investors received guaranteed annual returns and the option to sell shares back to Ripple, protections rarely seen in fast-growth private companies.
• Several funds estimated that up to 90% of Ripple’s valuation is tied to XRP, which has fallen sharply since October.

Blockchain company Ripple's $500 million share offering attracted prominent Wall Street investors on Monday. 

Ripple’s November fundraising attracted some of the biggest names in finance, helping cement its position as one of the most valuable private companies in crypto. Citadel Securities, Fortress Investment Group, Marshall Wace–linked funds, Brevan Howard affiliated entities, Galaxy Digital, and Pantera Capital all participated, backing Ripple at a $40 billion valuation. 

According to Bloomberg, the fundraiser followed a highly negotiated deal. Investors demanded protections that would shield them from the volatility that defines crypto markets. Ripple said in its investment announcement that it has repurchased more than 25% of its outstanding shares in recent years, a move the company says has “returned meaningful value to employees and early investors.” 

At the time of writing, XRP was trading at $2.07, almost flat in the last 24 hours. The retail sentiment on XRP trended in ‘neutral’ territory. 

Investors Saw Ripple Largely as an XRP Bet

The Bloomberg report stated that two of the funds participating in the deal assessed that at least 90% of Ripple’s net asset value came from XRP. 

Steve McLaughlin, CEO of fintech investment bank FT Partners, said funding deals that guarantee a minimum return aren’t uncommon, but “you wouldn’t see this typically with a red-hot, high-growth company.”

Ripple’s Trajectory

Through acquisitions and new institutional products, Ripple is broadening its business beyond XRP, a strategy analysts say could ease its reliance on the token. Recently, Ripple’s CTO, David Schwartz, noted on an X post that, “[h]ow is it better if Ripple feels more pressure to sell more XRP if the price drops? Wouldn't you think other sources of income [would] reduce this pressure?” He suggested that the company’s growing alternative revenue streams may reduce its sole reliance on XRP.

CTO David Schwartz recently stated on X that diversified revenue may reduce pressure to sell XRP during downturns. Ripple has also pursued acquisitions to expand its financial infrastructure presence. It bought Hidden Road, the multi-asset broker, for $1.25 billion in April and GTreasury, treasury management software, for $1 billion in October.

Many investors continue to view XRP as the primary driver of Ripple’s valuation. Bloomberg noted that even after recent declines, the value of Ripple’s XRP holdings stood at $83.3 billion as of Sunday, above the valuation implied in the share sale.

Read also: BitMine Ramps Up Ethereum Purchases Amid Optimism Over Network Upgrades, Macro Policy

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