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Ripple: NAV discount dynamics

Allan Kaplan

XRP’s Recent Surge and Ripple’s Valuation Potential


XRP has been making waves recently with a significant surge in its market price driven by increasing adoption, improved regulatory clarity, and Ripple’s strong business fundamentals. Ripple, the company behind XRP, remains committed to revolutionizing cross-border payments and boosting XRP adoption through the launch of its XRP ETF and its new stablecoin RLUSD. Ripple has processed over $70 billion in network payments, holds over sixty banking-related licenses, and employs over 900 people.


CEO Brad Garlinghouse suggests that Ripple’s valuation could follow similar metrics to companies like MicroStrategy (MSTR), which are valued based on the net asset value (NAV) of their holdings. Garlinghouse argues that even if Ripple were valued at a significant discount to NAV (as opposed to the premium MSTR enjoys), there’s still considerable upside compared to the current secondary market price of around $70, up from $40, and the most recent tender price of $125, closing this month.


Here’s how the numbers break down:

If Ripple were valued purely on its NAV, similar to MSTR, the rough calculation is as follows, assuming Ripple holds approximately 42 billion XRP and 170 million fully diluted shares outstanding.


These figures illustrate Ripple’s significant valuation potential at various XRP price points. While the market is inherently volatile, XRP’s growing adoption and expanding use cases make these estimates seem increasingly achievable.


Whether you’re an XRP enthusiast or just curious about Ripple’s progress, this is a journey worth following. With so much room for growth, it’s exciting to imagine what lies ahead for Ripple in the coming months and years.

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