Ripple sold $15 million chunk from its 2019 investments in Moneygram according to a new filing with the Securities and Exchange Commission as we are reading more about it in our Ripple news.
According to the filing, Ripple Labs managed to sell 2,264,113 shares of MoneyGram, and the crypto company made about $15,303,796.60 from the sale. Ripple sold $15 million of the investments in MoneyGram but the latter had its stock value soaring in the recent months from $2.94 to $8.53 as of late. After the news emerged, MGI slipped back to $6.54.
Despite the announcements of expansion and integration between the company and Ripple in 2019, their relationship seems to be settling down earlier this year as a Ripple spokesperson said:
“Ripple is a proud partner in MoneyGram’s digital growth transformation. This is purely a judicious financial decision to realize some gains on Ripple’s MGI investment and is in no way a reflection of the current state of our partnership.”
Ripple initially announced a huge investment in MoneyGram back in June which led to the latter using the xRapid technology of Ripple to speed up payments. Xrapid uses XRP in order to facilitate liquidity but Ripple still owns 48 billion coins and has spent a few years playing down its relationship to the token. However, the recent price surges could be changing that.
As per the recent reports about MoneyGram, According to the United States Securities and Exchange Commission filing, Ripple owned 6.22 million shares of MoneyGram or about 8.6% of the shares outstanding and a warrant as well to buy up to another 5.95 million shares for a total equity position of 12.2 million shares which is 17% of the shares of the company.
Ripple is sold 4 million shares or about 33% of the entire stake if you take into consideration the shares represented by the warrant. Right after the sale, Ripple owned at least 3.22 million shares which amount to 4.44% of MoneyGram. When including the additional shares in the warrant that give ripple the right to execute a stock buy with a predetermined price, the blockchain payments company will own about 11% of MoneyGram. Ripple cashed out a third of the stake in MoneyGram and under the terms of the initial investment, the company purchased the shares at $4.10 apiece which is a huge premium to their price at that time.
DC Forecasts is a leader in many crypto news categories, striving for the highest journalistic standards and abiding by a strict set of editorial policies. If you are interested to offer your expertise or contribute to our news website, feel free to contact us at [email protected]
Discussion about this post