Altcoins Talks - Cryptocurrency Forum
Crypto Discussion Forum => Cryptocurrency discussions => Topic started by: Hamzaal24 on March 04, 2020, 05:25:46 PM
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Ripple recently released $200M+ in XRP tokens. Moments like these are a good time to dwell on how effectively Ripple spends its free funds.
Case in point: Ripple's MoneyGram Acquisition.
Ripple purchased a 15% stake in MoneyGram for $50M. Today, that stake is worth less than $20M. However, the interesting thing is that this deal was unprofitable from day 1. Ripple purchased MoneyGram shares at a $333M valuation when the company's market cap was not even $100M.
By buying shares off the market, Ripple's $50M investment would’ve given it a controlling equity stake (50%+) in MoneyGram rather than just 15%.