Blockchain-based payments company Ripple reportedly wants to repurchase $285 million worth of company shares from early investors and employees.
Citing two sources familiar with the matter, Reuters reports that Ripple Labs is setting aside $500 million for the buyback.
The allocation will cover the costs of taxes and converting restricted stock units (RSU), or those issued as stock-based employee compensation, into common stock shares.
The tender offer, which effectively values Ripple at $11.3 billion, allows investors to sell up to 6% of their stake.
Ripple CEO Brad Garlinghouse says the company plans to buy back shares regularly to provide liquidity for investors, but he says the company has no interest in going public soon because of regulatory uncertainties in the US.
Ripple got embroiled in a legal battle with the U.S. Securities and Exchange Commission (SEC) over allegations that the company engaged in unregistered asset securities offering through the sales of XRP.
The company’s buyback move comes after U.S. District Judge Analisa Torres ruled in July that the automated and open-market sale of XRP does not constitute security offerings.
Says Garlinghouse, according to Reuters,
“Growing in the headwinds of the SEC lawsuit was certainly a challenge, but 95% of our customers are non-US financial institutions.”
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The post Ripple Moves To Buy Back $285,000,000 Worth of Shares From Early Investors and Employees: Report appeared first on The Daily Hodl.
