Blockchain payments giant Ripple has launched a share buyback program that places the company at a significant valuation of $50 billion.
Ripple is reviving its stock buyback efforts
According to a Wednesday report from Bloomberg, Ripple plans to buy back up to $750 million in shares from both investors and employees. According to sources familiar with the situation, the plan will be implemented by April.
This new buyback effort follows an earlier one in September, when Ripple planned to buy back $1 billion worth of shares. However, this initiative failed because the company’s participation rate was very low compared to previous rounds of tender offers.
During that effort, Ripple valued the company at $40 billion, but struggled to attract the attention of current shareholders, indicating that many were unwilling to part with their stake in what they saw as a promising venture.
Despite the recent news of the buyback, the blockchain payment company has consistently stated that it has no plans to take Ripple to the United States.
Meanwhile, a growing number of crypto companies, including giants such as Circle (CRCL) and Gemini (GME), have launched their initial public offerings (IPOs) in the US over the past year, amid a significant shift to a more pro-crypto environment among regulators.
XRP price is seeing a minor recovery
In light of the buyback announcement, XRP, the digital asset associated with Ripple, experienced a slight uptick, reaching around $1.39 at the time of writing.
However, the fifth-largest cryptocurrency by market capitalization has been struggling all-time, recording losses of 4% to 5% over the past seven to fourteen days, respectively.
Featured image from OpenArt, chart from TradingView.com
