Investors Don’t Believe Ripple Is Really Worth $10B — And They’re Preparing To Unload Equity Stake At A Steep Discount
Back in December 2019, Ripple announced that it had raised $200 million in a Series C funding round led by Tetragon and Japan’s SBI Holdings. The round reportedly valued the blockchain firm at $10 billion. At the time, Ripple CEO Brad Garlinghouse emphasized how the company had accelerated its momentum in boosting the adoption of its cryptocurrency XRP while other companies in the industry shut down.
Eight months later and two Ripple investors don’t think the company is really worth $10 billion. Surprisingly, one of them is actually an early-stage investor. An anonymous source told BTCTimes that the two investors — one from America and the other one from China — could be eyeing to offload their equity stake in Ripple at a sizable discount.
The source is quoted saying:
“I have access to two blocks of Ripple [equity] at a substantial discount to the last fund raise.”
The prospective sellers are willing to unload their Ripple equity holdings at a discount of as much as 40% from the valuation acquired during the Series C funding round. This means that they believe Ripple has a valuation of approximately $6-$6.5 billion.
Ripple’s Plans To Take The Company Public
The report of some investors planning to dump their Ripple shares at a discount means they think the firm is not going public any time soon.
As previously reported by ZyCrypto, Ripple’s Garlinghouse mentioned that the company was considering an initial public offering (IPO) in 2020 while speaking during the Davos World Economic Forum summit.
He had gone further to state that he expected more companies in the crypto/blockchain space to go public in the course of the year — and Ripple would definitely be on the “leading side”.