SBI Eyes XRP Buy Back Strategy to Boost Growth: Will It Work?
Mustafa Mulla16 Dec 20242 min read
SBI Holdings, one of Japan’s leading financial giants, is under increasing pressure to fully embrace XRP. GAM Investments, a global asset manager, has urged SBI to focus more on its XRP holdings and take bold steps to unlock its potential.
XRP, Ripple’s native token, has been making waves in the crypto world, surging by an impressive 500% in just one month. This sharp rise has sparked a lot of interest in the token’s future and its place in the broader crypto market.
Why XRP Matters to SBI?
For years, SBI has been a key supporter of Ripple and blockchain technology. The company owns an 8% to 9% stake in Ripple Labs and holds a significant amount of XRP tokens. However, SBI’s market value doesn’t seem to reflect the true worth of these crypto assets.
GAM Investments pointed out that SBI’s current market capitalization of JPY 1.2 trillion is well below the estimated JPY 1.6 trillion value of its Ripple and XRP holdings. This highlights a gap between the company’s actual net asset value (NAV) and its perceived market value.
SBI to Follow MicroStrategy?
GAM sees an opportunity for SBI to take a page out of MicroStrategy’s playbook, which made headlines with its large Bitcoin investments. GAM suggested that SBI start a buyback program for XRP, buying the token directly from the market. This would demonstrate SBI’s commitment to cryptocurrency and could also help increase XRP’s value by reducing its supply.
By adopting this buyback approach, GAM believes SBI could raise its market value to around JPY 3.9 trillion. Reducing XRP’s circulating supply could push up its price, benefiting both SBI and the overall crypto market.
All Eyes on XRP
XRP continues to gain attention, fueled by the launch of RLUSD and growing excitement about a possible XRP ETF approval. As of now, XRP is trading at about $2.39, showing a slight dip of 1.2%, with a market cap of $136.76 billion.
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As XRP continues to dominate headlines, SBI’s next steps could be the key to unlocking its true value in the crypto market.
