Ripple CEO Says Company is Focused on Acquisition Not IPO

Having made headlines in the past few weeks, Ripple has reiterated its core focus at this time, which hinges on acquisitions, not necessarily an IPO

San Francisco blockchain payment company Ripple has revealed its new focus on acquisition rather than an Initial Public Offering (IPO). The company’s CEO, Brad Garlinghouse, disclosed this new priority during a recent interview with Bloomberg TV.

Ripple Takes Bold Step After SEC Lawsuit 

Garlinghouse shared details about the blockchain firm’s future trajectory amid its visible organic growth. 

Although the Ripple executive did not mention any specific company, he highlighted Ripple’s effort towards acquiring some blockchain infrastructure companies that will complement its business. This information suggests that the firm has accumulated significant growth in the last few years, worthy of accommodating multiple acquisitions.

Ripple’s expansion cuts across its operations, revenues, and customer base without relying on external funding. Talks about an IPO have been ongoing, with many key crypto industry players spurring the company to make a move. 

Last year, Yoshitaka Kitao, a renowned Japanese businessman who also serves as CEO of SBI Holdings, urged the blockchain firm to prioritize an IPO as soon as it concludes its legal battle with the United States Securities and Exchange Commission (SEC).

With the five-year-long lawsuit finally over, speculation and pressure have grown. Kitao’s stance stems from the fact that an IPO would allow the company to go public by selling shares to investors and making substantial capital available for growth initiatives. Beyond this, an IPO could guarantee Ripple’s market expansion and solidify its reputation in the cryptocurrency sector.

Unfortunately, this is not the path Ripple is taking now, per Garlinghouse’s statement. 

Circle Rejects Ripple’s Acquisition Offer

Notably, the payments firm has made a $5 billion buy-out bid to stablecoin issuer Circle regarding acquisitions. 

Meanwhile, the USDC issuer rejected the bid, citing its low value. The offer came within 30 days of Circle applying with the SEC to go public. The Brad Garlinghouse-led firm is considering whether to make another offer to the stablecoin issuer or walk away entirely. 

Judging by its newly found acquisition hobby, Ripple will likely hint at another company purchase soon if the deal with Circle doesn’t pull through.

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