Payments company Ripple has announced a $200 million Series C share buyback, a decision that will lift the San Francisco-based tech company to a record $15 billion.
In December 2019, Ripple raised $200 million in a Series C funding round with Tetragon Financial Group, a British investment firm that served as a lead investor in SBI Holdings and Route 66 Ventures.
However, in December 2020, the US Securities and Exchange Commission filed a $1.3 billion lawsuit against Ripple Labs, co-founder Chris Larsen and CEO Brad Garlinghouse, accusing the parties of using the original XRP token as an unlicensed digital asset. safety .
Intent on moving away from Ripple in the midst of their high-profile and open-ended lawsuits, Tetragon filed a lawsuit against Ripple in early January 2021 at the Delaware Court of Chancery seeking to enforce its contractual obligations over a buyout clause for the undisclosed investment amount.
But just three months later, in April, the court ruled in favor of Ripple and against plaintiff Tetragon to end the financial dispute.
Having opted to voluntarily buy shares of Tetragon, SBI Holdings and Route 66 Ventures, he suggests that Ripple is looking to improve its financial strength, something Garlinghouse avoided in a recent tweet.
“Even with the headwinds of 2021, this was our best year ever,” he said, noting that the company’s $1 billion bank balance makes it “the strongest ever.”
In addition to the buyback and valuation news, Garlinghouse also shared optimism about the future of RippleNet and Ripple X, with the latter aiming to boost the utility of the XRP Ledger in a number of emerging sectors including non-fungible tokens and digital central banks. Interoperable multi-chain currencies and functions. , among other things.
In a call with Ripple to further explain their ambitions, the official said the purchase decision was made due to their “extremely strong market position”, citing the company’s “positive cash flow” and “strong balance sheet”. . paper.”
Besides, they note that Ripple had its “best year for employment in 2021” and is now looking to attract “hundreds of employees around the world this year” to support an already existing workforce of 500 employees.