Ripple announced a $200-million Series C share buyback, take the firm to a record-high valuation of $15 billion

Ripple, the blockchain payments firm, has repurchased all Series C shares originally issued to Tetragon Financial Group, SBI Holdings, and Route 66 Ventures in December 2019.

Ripple announces $200 million share buyback and expresses optimism for 2022

In December 2019, Ripple raised $200 million in a Series C funding round with Tetragon Financial Group, a United Kingdom-based investment firm, acting as the lead investor alongside SBI Holdings and Route 66 Ventures.

However, in December 2020, the United States Securities and Exchange Commission (SEC) launched a $1.3 billion financial lawsuit against Ripple Labs, and co-founders Chris Larsen and CEO Brad Garlinghouse accused parties of using XRP unlicensed digital asset security.

Intending to separate themselves from Ripple amid their public and well-known lawsuit, Tetragon sued Ripple in early January 2021 in the Delaware Premier Court, seeking to fulfill the contractual obligations of the acquisition clause for the value of the investment was not disclosed.

However, just three months later, in April, the court ruled in favor of Ripple and against the plaintiff, Tetragon, ending the financial dispute. Choosing to buy shares from Tetragon, SBI Holdings, and Route 66 Ventures implies that Ripple wants to enhance its financial strength.

Along with the acquisition and valuation news, Garlinghouse also shared optimism for the future of RippleNet and Ripple X, the latter of which is posed to enhance the utility of the XRP Ledger in an array of emerging sectors, including nonfungible tokens, central bank digital currencies, as well as interoperable, multichain functionalities, among others.

When reaching out to Ripple to better understand their ambitions, a representative spokesperson stated that the decision to buy was made due to their “solid position in the market,” citing that the company is “cash flow positive” and has a “strong balance sheet.”

Ripple has repurchased $200 million worth of Series C stock, a decision that will take the San Francisco-based technology company to a record high valuation of $15 billion. Additionally, Ripple experienced its “best hiring year in 2021,” and it is now looking to attract “hundreds of global employees this year” to support its existing 500-employee workforce.

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