Ripple CEO Brad Garlinghouse reveals that Blockchain Infrastructure Company is focusing on acquisitions rather than pursuing an IPO.
Gerlinghouse highlighted this in an interview with Bloomberg TV, where he shed light on the company’s future trajectory. He said Ripple is preparing to acquire a complementary blockchain infrastructure company after growing its business organically.
This suggests that Ripple has successfully expanded its operations, revenue and customer base through payment solutions without relying on external funds.
Ripple focuses on acquisitions rather than IPOs
Following this success, he revealed that Ripple is currently focusing on acquiring companies that complement its business.
He refused to mention the target company, but Garlinghouse said Ripple was interested in acquiring companies that provide “core blockchain infrastructure.”
Garlinghouse issued a statement when Sona Livasaku, Lead Global Finance Correspondent at Bloomberg, suggested that Ripple appears to prioritize acquisition over IPOs. When a Bloomberg reporter made this claim, Garlinghouse nodded in affirmation.
IPO plan
There was speculation about Ripple’s plan to pursue an IPO in the US. The debate will gain momentum in 2023, predicting that several analysts, like Linda Jones, could be made public through the IPO by 2025.
However, Garlinghouse dismissed rumors about the planned IPO. As previously reported, Garlinghouse noted that it would be difficult for the company to make it public while still being caught up in a legal battle with the US SEC.
He suggested that the SEC may not approve Ripple’s IPO request for the sake of the lawsuit. In the meantime, the lawsuit is approaching conclusion as the parties are currently negotiating a settlement.
Nevertheless, Ripple is focusing on acquiring other companies rather than pursuing an IPO in the US, as Garlinghouse suggested.
Ripple is reportedly offering to buy a circle
For context, this Bloomberg interview took place in March shortly after Garlinghouse revealed that the SEC had dropped its appeal. However, the interview resurfaced online following reports that Ripple offered to buy the USDC Stablecoin publisher circle for $5 billion.
However, Bloomberg reported that the circle rejected the offer because the circle was too low. The news comes weeks after the circle has submitted its submission to the SEC for publication.
Commenting on the development, a circle spokesman revealed that the company was “a quiet time with the SEC” and did not want to discuss market rumours or its financial plans. Meanwhile, Ripple has not issued an official statement regarding the development.
Meanwhile, Ripple has made significant progress in its acquisition plan. Last year, they expanded their custody sector footprint by acquiring Standard Custody & Trust Company. Last month, the company also reached a deal to acquire major Prime brokerage Hidden Road for $1.25 billion.
