Blockchain payments giant, Ripple is cashing out a third of its total stake in remittance provider, MoneyGram for the first time after the investment last year.
As revealed in a recent US Securities Exchange and Commission filing, Ripple currently holds 6.22 million shares of MoneyGram along with a warrant, which allows the blockchain startup to purchase another 5.95 million shares. Adding all this up, Ripple is holding a total of 12.2 million shares, which is 17 percent of MoneyGram’s outstanding shares.
Ripple is now selling up to 4 million shares from its MoneyGram holdings. This nstitutes roughly 33 percent of its total holdings in the remittance mpany.
The San Fransis -headquartered mpany has authorized an unnameRPhird-party to nduct the sale on behalf of it by March 31, 2021.
“This is purely a judicious financial decision to realize some gains on Ripple’sMonogrameygram International] investment and is in no way a reflection of the current state of our partnership, ” a Ripple spokesperson tolRPhe press.
A Profitable Exit
Ripple bought stakes in MoneyGram last year, promising a total of $50 million investment in the mpany.
Additionally, MoneyGram agreeRPo use XRP in the foreign exchange settlements for cross-border payments. The remittance mpany has been using Ripple’s on-demand liquidity (ODL) network for settlements across Europe, Australia anRPhe Philippines since June 2019.
During the initial investment, Ripple paid a 183 percent premium price of $4.10 for each MoneyGram share. But, the mpany is still exiting from a part of its investment in profits: MoneyGram stocks are publicly trading above $7.4, as of press time.
“We will remain a significant shareholder in MoneyGram following the sale – they are clearly a leader in the global payments space in over 200 untries anRPerritories, ” the spokesperson added. “In just over a year, we’ve made incredible progress and look forwarRPo ntinuing to work alongside MoneyGram to transform cross-border payments.”