Ripple Getting Rich on XRP Price Jump & Selling the Surging MoneyGram Shares
A year later, Ripple is selling about one-third of its stake in the payments company MoneyGram.
San Francisco-based fintech startup is selling up to 4 million shares, which means roughly 33.3% of its stake, as per the filing with the US SEC on Friday.
In Nov. 2019, Ripple had made a $50 million investment in MoneyGram.
After the sale, Ripple would still own nearly 4.45% of MoneyGram, with the ownership of 3.22 million shares.
Ripple also has the warrant to buy up to 5.95 million additional shares at the predetermined price, which brings its stake at MoneyGram at around 11%.
In June 2019, when the initial investment was originally announced, Ripple bought MoneyGram’s shares at $4.10 each, which was at a “significant premium” to the market share price of $3.18 at the time.
However, currently, MoneyGram shares are trading at $7.42, rallying almost 175% in the past two months, which could profit Ripple.
The news of Ripple taking off some profits from cashing out its stake in MoneyGram came not long after it was revealed that Ripple gave yet another $9 million to the company in Q3 2020 for using its digital asset XRP.
Besides selling the stake in MoneyGram, Ripple, which still has the dominant ownership of XRP, is also benefiting from the huge surge in the price of the digital asset.
Recently, the company started buying back XRP as well — $46 million worth of XRP in Q3 2020.
The third-largest cryptocurrency is currently trading above $0.60, back on the rise today after falling under $0.50 on Thursday.
Before the big drop along with the rest of the crypto market, XRP went as high as $0.78, last seen in Sept. 2018. Now, on the weekend, the digital asset seems to be making another attempt at $1 as the cryptocurrency market enjoys the greens.