Ripple's $500 Million Stock Sale Exposed for "Guaranteed Profit" Buyback Clause

PANews, December 8—According to Bloomberg, Ripple completed a share sale of approximately $500 million (valued at around $40 billion) in November, with investors including Citadel Securities, Fortress, Marshall Wace, Brevan Howard, Galaxy Digital, and Pantera. Some investors estimate that about 90% of Ripple’s net assets come from its holdings of XRP (valued at approximately $124 billion in July, with tokens released in batches from escrow). The agreement includes protection clauses: investors can sell back shares within 3-4 years at an annualized 10% return; if Ripple chooses to repurchase, the annualized return is 25%. There is also a liquidation preference. Since October 31, XRP has fallen about 16%, down more than 40% from its July peak; as of Sunday, the value of XRP held by Ripple was about $83.3 billion, higher than the valuation in this round of funding. Ripple says there is no IPO timeline.