Ripple is selling about a third of its stake in the payments service MoneyGram. This is the first such deal since the two players began close cooperation.
According to the SEC filing, Ripple owns 6.22 million MoneyGram shares, or 8.6% of the total. The California-based fintech also holds warrants to buy another 5.95 million shares. These securities allow Ripple to increase its stake in MoneyGram to 12.17 million shares, or 17% of the total.
Ripple intends to sell 4 million shares. This represents about 33.3% of its stake in the payments service, if the warrants are counted. After the sale the company will own 3.22 million shares, representing 4.44% of MoneyGram.
Ripple’s stake in MoneyGram was acquired in 2019 — the company bought the shares at $4.10 apiece. The Nasdaq-listed securities trading under the ticker have risen 260% since the start of the year and are currently trading at $7.42. The sale of the shares is set to yield substantial profit for the California-based company.
“This is an exceptionally well-thought-out financial decision to realise some profit from Ripple’s investment in MGI. This does not reflect the current status of our partnership in any way,” said representatives of the company.
Ripple stressed that the process of selling the shares has not yet been completed.
In the third quarter MoneyGram received $9.3 million from Ripple.
From January to the end of March MoneyGram received $16.6 million from the fintech startup. In the second quarter the volume of payments stood at $15 million.
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