Several crypto commentators have distributed rumors suggesting that Ripple has raised the circle’s purchase bids by a massive 4x, but there have been no confirmation yet.
Remember that report recently It attracted attention The ripple It was provided Between $4 billion and $5 billion to acquire Circle, the company behind USDC. According to Bloomberg, the circle declined the offer and was focused. Instead, above Future IPOs.
Through its own RLUSD, which holds a market capitalization of $317 million compared to USDC’s $61.7 billion, Circle concluded that the initial offer was insufficient.
Has Ripple increased the circle’s purchase income bill to $200 billion?
However, the claims surfaced in X, claiming that Ripple had increased its offer to a staggering four-fold spike of $20 billion. These claims quickly spread among crypto commentators, reflecting the revised figures of a number of posts on May 2.
Additionally, Media Platform Cointelegraph briefly reported $20 billion rumors in a tweet, only to be removed later due to the lack of official sources. In Frenzy, a Circle spokesman declined to comment, citing regulatory restrictions related to the SEC’s quiet period.
However, skepticism emerged. Veterinarian, the validator of the unique node list in XRPL, advice Market participants are careful about rumors of $20 billion. The vet emphasized that neither Ripple nor Circle issued a confirmation.
Easya co-founders share why the $200 billion offer is unrealistic
Meanwhile, Dom Kwok, co-founder of Web3 Education Startup Easya, discussed why the $20 billion offer is unrealistic. Based on his previous experience with Goldman Sachs and Blackstone, Kwok argued that the rumoured $20 billion price tag is very incredible.
Much confusion about the @circle/@ripple transaction on X.
I worked for @goldmansachs and @blackstone, so I thought I was sharing some insights into how the acquisition works.
TLDR Ripple’s final offer will likely range from $6 billion to $6.5 billion.
why?
A typical acquisition…
-dom(bull/ish) | Easea (@dom_kwok) May 2, 2025
He explained that the $5 billion valuation is a fair estimate based on Circle’s expected IPO and is based on Ripple’s original offer. They were lined up With this rating.
More importantly, he highlighted how mergers and acquisitions typically work in financial markets. According to KWOK, acquisition offers usually come with a premium that seduces the target company.
These premiums typically range from 20% to 30% of the baseline rating. Applying this standard range, he calculated that a reasonable final offer from Ripple is likely to range from $6 billion to $6.5 billion. This range reflects a 20% to 30% premium of the circle’s estimated $5 billion IPO rating.
Kwok too address Misconceptions surrounding the circle’s finances. The company holds $60 billion in collateral and supports the issued stubcoin, but the circle has revealed that it does not own the collateral.
Instead, the company will earn revenue from the interest generated from these funds. This revenue stream, not raw collateral value, is the basis for the company’s assessment.
Despite solid reasoning provided by experts such as KWOK, investors and industry observers need to remain open-minded. The $20 billion valuation appears to be unproven, but neither is Ripples The circle has not publicly confirmed or denied this figure.
The true nature of the negotiations remains unknown until either company releases an official statement. Therefore, market participants should not accept or deny the rumors quickly.
