Ripple in a first of its kind move has filed for selling one-third of its shares in MoneyGram, one of its key strategic partners from 2019. The blockchain solution provider had completed a $50 million investment in MoneyGram in November last year. According to the official filing made with the SEC, Ripple currently owns 6.22 million shares equivalent to 8.6% in outstanding shares of MoneyGram and a warranty to buy another 5.95 million shares. Ripple held a total of 12.2 million shares equivalent to a 17% stake in the company.
Ripple is all set to sell 4 million of its current shareholding from MoneyGram, however, it is not known if these include the warranted share of 5.95 million shares. If the sale includes the warranted shares then Ripple would still hold an 11% equity in MoneyGram. One of the spokespeople from Ripple revealed that the decision to sell a significant portion of their MoneyGram shareholding was purely a financial decision as the company is making over 80% gains on their holdings.
Ripple bought MoneyGram shares at $4.10 a piece and selling them at $7.42 apiece, the spokesperson said,
Ripple is a proud partner in MoneyGram’s digital growth transformation. 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.
The Ripple spokesperson further revealed that their firm would continue their association with MoneyGram and expand their reach in the remittance services. He explained,
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. In just over a year, we’ve made incredible progress and look forward to continuing to work alongside MoneyGram to transform cross-border payments.
Ripple over the years has established itself as a key blockchain solution provider for international banks with over 200 partners and MoneyGram is one of the key members.
To keep track of DeFi updates in real time, check out our DeFi news feed Here.