Ripple has ruled the crypto circles for quite a few days now as its price soared to unprecedented highs.
Ripple has now announced selling one-third of its stakes, i.e., 4 million shares in the MoneyGram, in an attempt to cash out its investments.
Ripple To Sell Its 4 Million Moneygram Shares
Ripple is now selling around 33 percent of its shares of MoneyGram as a move to benefit from the investment in stakes as the MoneyGram share price increases. MoneyGram stocks have shown a massive 260 percent year to date increase from its initial price of $2.06 at the beginning of this year; the share now stands at $7.42 on Nasdaq.
As per the Ripple Spokesperson, the step comes as the company looks to leverage its MoneyGram International Investment and deduce certain benefits. He further added that this is solely a ‘judicious financial decision’ and nothing to reflect the partnership between Ripple and MoneyGram.
Ripple spokesperson also added that the company would continue to be a significant shareholder in MoneyGram, and they have made tremendous progress ever since its partnership with MoneyGram and continue to work in tandem with the payments company to provide better cross border payment solutions.
As per the filing with the USE Securities and Exchange Commission, Ripple has assigned an external agency to shell out 4 Million MoneyGram International shares, which would help Ripple earn around $30 Million. Currently, Ripple owns 6.23 million MoneyGram shares as part of its massive international investment. Ripple will reserve the remaining 2.23 Million shares and has the warrant to purchase more than 5.95 million shares, as revealed in the document filed with US SEC.
MoneyGram is a leading money transfer and payment services provider that facilitates fast and secure cross border payments transfer across more than 200 countries. It uses both physical and online networks to allow global payments, empowering people to send money to their family and friends in a convenient way.
The sale is the first large scale remittance by Ripple after the company invested $50 Million in the payment’s giant in November 2019. MoneyGram utilizes the XRP based payment settlement network to offer services to its customer base in Europe, Australia, and the Philippines.
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