The San Francisco-based blockchain payments company Ripple is reportedly going to cash out almost one-third of its entire stake in MoneyGram a money transfer giant based in the United States. The blockchain payment technology behemoth seems to be taking this decision after noting a significant surge in the stocks of MGI.
Reportedly, a document has been filed by Ripple with the United States Securities and Exchange Commission (SEC) on Friday. As per this filing, an agreement has been signed between MoneyGram and Ripple Labs according to which Ripple will be selling approximately 33.3 percent of its total stake in the remittance giant. This represents an amount of 4,000,000 in shares that are being cashed out by the blockchain payments firm. Since the company made an investment of $50 million in MoneyGram back in the year 2019, it is the first such sale of stocks by Ripple.
Back in 2019, Ripple bought the shares of MoneyGram at a price rate of $4.10 per stock. However, the price value per share of the money transfer giant has spiked high. Reportedly, the value of MoneyGram’s shares has increased by more than 260 percent in the year 2020. The price of these shares closed at $7.42 per stock on Friday. This means that the company will be earning huge profits through its investment in MoneyGram. This potential surge in the value of MoneyGram’s shares might have led the company to make this decision.
As per the US SEC filing, a total of 6.22 million in MoneyGram’s shares or 8.6 percent of shares outstanding is owned by the blockchain payments tech giant. The company will still be having approximately 4.4 percent of MoneyGram’s total shares or around 3.22 million shares despite the sale of up to 4 million shares.
As reported by CoinDesk, a spokesperson from Ripple said:
“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.”
After making an investment of $50 million in MoneyGram in 2019, an amount of more than $9 million was paid by the company to MoneyGram at the end of the third quarter of 2020.
At Tokenhell, we help over 5,000 crypto companies amplify their content reach—and you can join them! For inquiries, reach out to us at info@tokenhell.com. Please remember, cryptocurrencies are highly volatile assets. Always conduct thorough research before making any investment decisions. Some content on this website, including posts under Crypto Cable, Sponsored Articles, and Press Releases, is provided by guest contributors or paid sponsors. The views expressed in these posts do not necessarily represent the opinions of Tokenhell. We are not responsible for the accuracy, quality, or reliability of any third-party content, advertisements, products, or banners featured on this site. For more details, please review our full terms and conditions / disclaimer.