Ripple successfully attracts $500 million investment… Company valuation jumps to $40 billion

Recently, Ripple raised its corporate valuation to $40 billion (approximately KRW 58.828 trillion) through an equity sale of $500 million (approximately KRW 7.353 trillion). This investment was a large-scale deal involving major Wall Street institutions, not only strengthening Ripple’s position in the cryptocurrency market but also bringing renewed attention to the role of its token, XRP.

According to Bloomberg, this round of financing was driven by institutional investors’ desire to gradually enter the digital asset market, while also demanding structured protections. Participating investors included Citadel Securities, Fortress Investment Group, Marshall Wace, Brevan Howard, Galaxy Digital, and Pantera Capital, among others.

The terms of the deal are also notable. Investors set conditions granting Ripple the right to repurchase shares in 3 to 4 years, with an annual return commitment of 10%. If Ripple initiates a buyback, the yield rises to an annualized 25%. Additionally, the deal includes a “liquidation preference,” giving new funds priority for repayment in the event of restructuring or acquisition—providing more conservative protections compared to typical cryptocurrency investments.

After the news broke, XRP rose to around $2.09 (approximately KRW 3,073) that day. However, this price increase coincided with a broader market uptrend, so it should be interpreted cautiously and not simply seen as an independent bullish signal for Ripple.

Meanwhile, MicroStrategy (now rebranded as “Strategy”), ticker $MSTR, recently made a large-scale Bitcoin purchase of about $1 billion (approximately KRW 14.707 trillion), significantly impacting Bitcoin’s supply and demand at year-end. This purchase acquired 10,624 BTC at an average price of $90,615 per Bitcoin (approximately KRW 133.25 million), making it the largest single purchase this quarter. Funds were raised through a combination of stock offerings and preferred share issuances.

With this purchase, the company’s total BTC holdings reached 660,624 BTC, with an average acquisition cost of $74,696 (approximately KRW 109.82 million). However, despite such a massive purchase, Bitcoin is currently still trading below $92,000 (approximately KRW 135.4 million).

Meanwhile, Shiba Inu (SHIB) saw bullish expectations strengthen after 45.2 billion tokens were withdrawn from exchanges in a single day. According to CryptoQuant data, SHIB’s net exchange outflow over the past 24 hours was -45.214 billion tokens, suggesting a clear trend of “self-custody” rather than selling.

This trend is interpreted as a signal that both retail and whale investors prefer holding rather than selling SHIB. As the overall market shifts to an upward trend, buying sentiment for altcoins appears to be generally recovering.

Article summary by TokenPost.ai

🔎 Market Interpretation

The trend of institutional capital formally entering the cryptocurrency market is becoming apparent, and Ripple’s deal is seen as an example of strengthening the link between traditional finance and digital assets. Strategy’s increased Bitcoin purchases can be interpreted as a focus on long-term supply and demand rather than short-term price movements.

💡 Strategic Points

XRP’s increased liquidity and the recognition of Ripple’s corporate value suggest that other blockchain companies may attract similar structured investments in the future. The future profitability and risk of Bitcoin’s long-term holding strategy may depend on the gap between the average purchase cost and the market price.

📘 Glossary

· Liquidation preference: The right ensuring investment funds are repaid first in the event of a sale or restructuring.

· Self-custody: The practice of managing assets directly in a personal wallet rather than through an exchange.

· ATM: At-the-market security issuance method, where securities are issued at prevailing market prices.

TP AI Notes

This article has been summarized using a language model based on TokenPost.ai. The main content of the original text may have been omitted or may differ from the facts.