Ripple Exits from 33% of Its MoneyGram Investment

Monday, 30/11/2020 | 12:12 GMT by Arnab Shome
  • The company will sell around 4 million MoneyGram shares by March 31, 2021.
Ripple Exits from 33% of Its MoneyGram Investment
Reuters

Blockchain Payments giant, Ripple is cashing out a third of its total stake in remittance provider, MoneyGram for the first time after the investment last year.

As revealed in a recent US Securities Exchange and Commission filing, Ripple currently holds 6.22 million shares of MoneyGram along with a warrant, which allows the blockchain startup to purchase another 5.95 million shares. Adding all this up, Ripple is holding a total of 12.2 million shares, which is 17 percent of MoneyGram’s outstanding shares.

Ripple is now selling up to 4 million shares from its MoneyGram holdings. This constitutes roughly 33 percent of its total holdings in the remittance company.

The San Fransisco-headquartered company has authorized an unnamed third-party to conduct the sale on behalf of it by March 31, 2021.

“This is purely a judicious financial decision to realize some gains on Ripple's MGI [Moneygram International] investment and is in no way a reflection of the current state of our partnership,” a Ripple spokesperson told the press.

A Profitable Exit

Ripple bought stakes in MoneyGram last year, promising a total of $50 million investment in the company.

Additionally, MoneyGram agreed to use XRP in the foreign exchange settlements for cross-border payments. The remittance company has been using Ripple’s on-demand liquidity (ODL) network for settlements across Europe, Australia and the Philippines since June 2019.

During the initial investment, Ripple paid a 183 percent premium price of $4.10 for each MoneyGram share. But, the company is still exiting from a part of its investment in profits: MoneyGram stocks are publicly trading above $7.4, as of press time.

“We will remain a significant shareholder in MoneyGram following the sale – they are clearly a leader in the global payments space in over 200 countries and territories,” the spokesperson added. “In just over a year, we’ve made incredible progress and look forward to continuing to work alongside MoneyGram to transform cross-border payments.”

Blockchain Payments giant, Ripple is cashing out a third of its total stake in remittance provider, MoneyGram for the first time after the investment last year.

As revealed in a recent US Securities Exchange and Commission filing, Ripple currently holds 6.22 million shares of MoneyGram along with a warrant, which allows the blockchain startup to purchase another 5.95 million shares. Adding all this up, Ripple is holding a total of 12.2 million shares, which is 17 percent of MoneyGram’s outstanding shares.

Ripple is now selling up to 4 million shares from its MoneyGram holdings. This constitutes roughly 33 percent of its total holdings in the remittance company.

The San Fransisco-headquartered company has authorized an unnamed third-party to conduct the sale on behalf of it by March 31, 2021.

“This is purely a judicious financial decision to realize some gains on Ripple's MGI [Moneygram International] investment and is in no way a reflection of the current state of our partnership,” a Ripple spokesperson told the press.

A Profitable Exit

Ripple bought stakes in MoneyGram last year, promising a total of $50 million investment in the company.

Additionally, MoneyGram agreed to use XRP in the foreign exchange settlements for cross-border payments. The remittance company has been using Ripple’s on-demand liquidity (ODL) network for settlements across Europe, Australia and the Philippines since June 2019.

During the initial investment, Ripple paid a 183 percent premium price of $4.10 for each MoneyGram share. But, the company is still exiting from a part of its investment in profits: MoneyGram stocks are publicly trading above $7.4, as of press time.

“We will remain a significant shareholder in MoneyGram following the sale – they are clearly a leader in the global payments space in over 200 countries and territories,” the spokesperson added. “In just over a year, we’ve made incredible progress and look forward to continuing to work alongside MoneyGram to transform cross-border payments.”

About the Author: Arnab Shome
Arnab Shome
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About the Author: Arnab Shome
Arnab is an electronics engineer-turned-financial editor. He entered the industry covering the cryptocurrency market for Finance Magnates and later expanded his reach to forex as well. He is passionate about the changing regulatory landscape on financial markets and keenly follows the disruptions in the industry with new-age technologies.
  • 6528 Articles
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