Surprise Development In The Cryptocurrency World: Ripple Takes This Step.
Blockchain payments giant Ripple has maintained ties with global remittance giant MoneyGram since the $ 30 million investment in the company’s equity in early 2019 and a commercial deal for cross-border payments using digital assets. This move was followed by another $ 20 million investment, which increased Ripple’s stake in Moneygram to 9.95%.
Ripple Sells Part of Its Shares in MoneyGram
Now, recent reports reveal that Ripple is ready to sell about a third of its shares in MoneyGram as part of the company’s first sale since its investment in the remittance giant.
In a recent statement to the U.S. Securities and Exchange Commission, Ripple currently owns 6.22 million MoneyGram shares, or 8.6% of the outstanding shares, and up to 5.95 million shares for a stock position totaling 12.2 million shares. It is stated to be a purchase guarantee. This figure corresponds to 17% of MoneyGram’s outstanding shares.
In a notification to the US Securities and Exchange Commission, Ripple received guarantees that gave it the right to increase its shares to 15% in the future. This completed the acquisition of a $ 50 million stake in Moneygram as part of the original commitment.
4 Million Shares
The company will now sell 4 million of these shares. This figure constitutes 33.3% of all shares. After the sale, Ripple will retain control of at least 3.22 million shares, or 4.44%, in MoneyGram.
Given the order that gives Ripple the right to buy shares at a predetermined price, the blockchain payment firm will still own about 11% of MoneyGram.
Ripple Makes Good Money
At the time of acquisition, the price of the shares in MoneyGram was $ 4.10. The price is currently up more than 260% in 2020 and closed at $ 7.42 on Wednesday. This gives Ripple a huge profit for its investment. The sale is currently underway, according to a Ripple spokesperson:
“Ripple is a proud partner of MoneyGram’s digital growth transformation. This is a perfectly logical financial decision to reap some gains from Ripple’s MGI [MoneyGram International] investment, and is in no way a reflection of the current state of our partnership. “
MoneyGram uses Ripple’s ODL in its daily transactions through RippleNet in various jurisdictions. All things considered, both companies seem to benefit from the partnership, and each new expansion offers new opportunities for Ripple and XRP. However, this sale does not mark the end of this partnership.
“We will remain a major shareholder in MoneyGram after the sale,” said Ripple spokesperson. MoneyGram is clearly a leader in global payments in over 200 countries and territories. “We’ve made incredible progress in just over a year and we look forward to continuing to work with MoneyGram to transform cross-border payments,” he says.