Ripple Inc. Nets $40 Million Profit on $50 Million MoneyGram Investment
Ripple Inc., the company behind the XRP cryptocurrency, has earned a hefty profit of $40 million on their original $50 million MoneyGram investment in June 2019.
This is a gain of 80% in 17 months.
They are now selling as much as 4 million shares of their 12.2 million of MoneyGram stock. 4 million shares is worth $28.2 million at the current price of $7.42 per share.
“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,” said a Ripple spokesman.
Ripple has paid $52 million to MoneyGram for their use of XRP-based settlement network, the On-Demand Liquidity (ODL) Network (formerly known as xRapid). These payments are fees earned by MoneyGram for providing liquidity to the ODL network.
MoneyGram has used the XRP-based network to conduct transactions in Europe, Australia, and the Philippines since June 2019.
“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,” the Ripple spokesperson said.
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