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Ripple’s $500 Million Raise Came With Investor Guarantees as Wall Street Weighed XRP Risk

Investors secured profit guarantees reflecting caution over Ripple’s XRP concentration.

Overview

  • Bloomberg detailed a put right after three or four years that guarantees a 10% annual return unless an IPO occurs.
  • If Ripple compels a repurchase, investors receive a 25% annualized return and priority through a liquidation preference.
  • Citadel Securities, Fortress Investment Group, Marshall Wace, Brevan Howard–linked vehicles, Galaxy Digital, and Pantera joined the round at a $40 billion valuation.
  • Benzinga estimated Ripple would face roughly $732 million to buy back the new shares after four years under the agreed terms.
  • Multiple funds judged about 90% of Ripple’s value as tied to XRP, with roughly $124 billion held in July, while XRP has dropped about 40% from its mid‑July peak and the company has no immediate IPO plan.