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IEditor’s note: the story has been corrected to clarify that affiliates of Citadel Securities were involved in the funding round.
Ripple’s $500 million capital raise in November, completed at a $40 billion valuation, has drawn significant interest across Wall Street, marking the highest valuation ever achieved by a private crypto company.
What Happened: The funding round attracted heavyweight traditional finance names including affiliates of Citadel Securities, Fortress Investment Group, Marshall Wace, Brevan Howard, Galaxy Digital, and Pantera, but the investment came with unusually tight safeguards.
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According to Bloomberg, these projections indicate that although institutional appetite for crypto is growing, major firms still remain cautious amid market volatility and regulatory uncertainty.
Key deal terms included:
Investors can force Ripple to repurchase their shares after 3–4 years with a guaranteed minimum return of 10% annually unless the company goes public.
If Ripple chooses to buy shares sooner or structure the repurchase differently, it must pay investors a 25% annualized return.
New investors received liquidation priority over existing shareholders in the event of a sale or bankruptcy.
Ripple would need to spend an estimated $732 million to buy back the shares after four years.
Why It Matters: Crypto fundraising has surged to $23 billion in 2025, supported by a highly favourable political backdrop under the Trump administration.
Yet, public-market crypto companies have suffered steep declines in recent months, including Circle (NYSE:CRCL) and various high-beta digital asset firms, signaling a widening disconnect between private valuations and public performance.
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Even American Bitcoin Corp. (NASDAQ:ABTC), co-founded by Eric Trump, plummeted 50% within minutes on Dec. 2, illustrating the fragility of sentiment in crypto-exposed equities.
Ripple’s President has emphasized that the company has no immediate plan for an IPO.
Its strategic acquisitions, notably Hidden Road and GTreasury, reflect a shift toward becoming a broader fintech and institutional infrastructure provider, potentially reducing XRP’s (CRYPTO: XRP) influence over Ripple’s long-term valuation.
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