Ripple sells shares in MoneyGram for the first timeadmin, · Categories: Bitcoin
Ripple (XRP) invested in the world’s second largest provider of international transfers (remittances) in 2019.
Now, for the first time, the company is selling about a third of its shares in MoneyGram
Ripple announced in a filing to the US Securities and Exchange Commission last Friday that it plans to sell four million shares of MoneyGram by March 31, 2021 .
As a result, Ripple would only have 2.3 million shares in MoneyGram. However, the company has an option that entitles it to purchase 5.9 million additional shares. In total, Ripple is entitled to 8.2 million MoneyGram shares.
In terms of percentage ownership, Ripple sells about 33 percent of its MoneyGram shares when you include the share purchase options. A representative of Ripple told the crypto magazine TheBlock about the sale as follows:
This is a purely financial decision in order to take profits on our investment in MoneyGram
The sale has nothing to do with the current status of our cooperation.
In fact, the sale of the shares brought the company a price gain of almost 80 percent compared to the initial investment.
Ripple and MoneyGram partnered last year to use XRP as part of MoneyGram’s cross-border payments business to process foreign exchange payments. As part of the agreement, Ripple invested $ 50 million in MoneyGram . The partnership agreement is limited to July 2023.