Ripple is strengthening its position as one of the largest private blockchain companies by initiating a major share repurchase program that pushes its valuation toward $50 billion while providing liquidity to early investors and employees. According to Bloomberg, Ripple launched a tender offer allowing existing shareholders to sell up to $750 million worth of shares back to the company. The buyback window remains open until the end of April, giving eligible participants time to decide as Ripple adjusts its shareholder structure amid shifting crypto market conditions.
Where Does the Buyback Money Come From?
Ripple operates as a private tech firm building blockchain-based payment infrastructure for financial institutions; XRP functions as a digital asset designed for liquidity and settlement in cross-border payments. The company's internal financial decisions do not directly determine XRP's price or supply — token value primarily depends on exchange trading and broader market sentiment. However, Ripple's business strategy often shapes investor perceptions of the XRP ecosystem, meaning such capital moves can influence narratives around the token.
Critics on social media wasted no time pointing out the tension. Zach Rynes, a Chainlink community liaison, argued that Ripple may be repurchasing company shares using capital obtained from selling XRP. He called it a token-versus-equity conflict seen in parts of the crypto industry, where corporate shareholders and token holders have diverging interests.
Another user, Fishy Catfish, mocked CEO Brad Garlinghouse's statement that "XRP is at the center of everything we do." He wrote: "First, we sell XRP to launch products and buy companies. Then, with the remaining money, we do buybacks of Ripple Labs stock! We socialize all of our corporate overhead to XRP holders, and then privatize all the spoils to Ripple Labs shareholders! XRP is at the center of it all!"
Valuation Surge vs. Ecosystem Trust
Ripple's buyback underscores its rapid valuation growth — from roughly $11 billion in 2024 to nearly $50 billion today. But detractors say XRP holders do not share in that growth. Since late 2024, XRP price has struggled, with on-chain data showing exchange liquidity hitting record lows (see previous report: "Nobody Is Moving XRP"). The structure — selling XRP to fund expansion while using residual cash for stock buybacks — places dual pressure on token holders: increased supply from sales weighs on price, yet corporate gains are not passed through to the token.
Ripple has not directly addressed whether buyback funds come from XRP sales. Garlinghouse continues to stress XRP's centrality to Ripple's strategy, but the controversy has amplified scrutiny of the relationship between the company and its token. As the buyback window stays open, markets will watch for Ripple's next financial disclosure and on-chain XRP movements.