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Home Latest News Altcoins Ripple Is Selling a third of its total shareholding in Moneygram

Ripple Is Selling a third of its total shareholding in Moneygram

Ripple Labs Inc. is selling 4 million of its shares or 33% of Its Stake in Moneygram

The decision appears to be partially driven by the surging share price of Moneygram and Ripple’s intention to cash out after purchasing the stock at a premium of $4.10 in 2019. At the close on November 27, Moneygram shares were down 4.8 percent on the Nasdaq Stock Exchange at $7.42. Although, the price has risen by 260% year to date, up from $2.06 on January 2. If Ripple sold its 4 million Moneygrams at current market prices, it will earn almost $30 million which is about 50 percent gain. But the sale still in process.

A spokesperson for Ripple was cited by industry publications as saying, “this is purely a judicious financial decision to realize some gains on Ripple’s Moneygram International investment…” The spokesperson continued that the selling “is in no way a reflection of the current state of our partnership.

Ripple, the cryptocurrency issuer of the eponymous XRP, has the option to acquire a further 5.96 million shares under the warrant. If exercised, this option will raise Ripple’s overall shareholding to 12.2 million shares or nearly 17 percent of Moneygram’s outstanding shares.

“We will remain a significant shareholder in Moneygram following the sale,” asserted the Ripple spokesperson, adding that “in just over a year, we’ve made incredible progress and look forward to continuing to work alongside Moneygram to transform cross-border payments.” Moneygram uses Ripple’s XRP-based settlement network, the On-Demand Liquidity (ODL) network, to facilitate remittances in Australia, Europe, and the Philippines.Moneygram uses Ripple’s XRP-based settlement network, the On-Demand Liquidity (ODL) network, to facilitate remittances in Australia, Europe, and the Philippines.

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