Wall Street’s $500M Ripple Deal Had Baked in Profit Guarantees on XRP Risk – Bloomberg
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Ripple raised $500 million in a share sale at a $40 billion valuation, attracting major investors like Citadel Securities and Fortress. Investors secured protections allowing a 10% guaranteed annual return after 3-4 years, with 90% of Ripple's value tied to its XRP treasury.
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- The Deal: Ripple secured $500 million in November at a $40 billion valuation, attracting heavyweights like Citadel Securities and Fortress Investment Group.
- The Hedge: Investors negotiated rare downside protections, including a right to sell shares back to Ripple at a 10% guaranteed annual return after 3-4 years.
- The Asset: Funds assessed that nearly 90% of Ripple’s net asset value is derived from its XRP treasury, effectively making the equity a discounted proxy for the token.
Ripple’s $500 million share sale has become the latest test case for how Wall Street enters crypto without taking full market risk.
A new Bloomberg report shows that the Ripple $500 million share sale at a $40 billion valuation gave funds tied to Citadel Securities, Fortress, Brevan Howard, Marshall Wace, Galaxy Digital, and Pantera guaranteed annual returns, put options, and liquidation …
Read The Full Article Wall Street’s $500M Ripple Deal Had Baked in Profit Guarantees on XRP Risk – Bloomberg On Coin Edition.
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