Connect with us

Blockchain

Seagate Surges With Rumors of Ripple Partnership Looming

Published

on

Summary

Seagate Technology invested in the Series A and B of Ripple, owner of 61% of XRP, a top-three cryptocurrency.

Ripple holdings of XRP are currently worth over $180B on the market.

If Seagate still has its Ripple investment, it could plausibly be worth $7.8B, two-thirds of its market cap.

The street has given zero credit for its crypto-investing prowess.

Many words have been used to describe Seagate Technology (NASDAQ:STX), a large manufacturer of hard disk drives: dated technology stock, stable dividend player, acquisition target.

How about masterful cryptocurrency investor? It turns out that Seagate Technology invested in both the 2015 $28m Series A and 2016 $55m Series B rounds of Ripple, the company that owns 61% of XRP, a top-three cryptocurrency in the world.

Seagate InvestmentsSource: Crunchbase.com

According to CoinMarketCap, there are currently 100B total XRP in existence, of which Ripple (the company), owns 61B. At current prices (~$3/XRP), this is worth $183B on paper.

Current state of XRPSource: Coinmarketcap.com

We can hypothesize that Seagate has not cashed out its investments in Ripple, as it participated in both the Series A and Series B, and there hasn’t been a major liquidity event for the company. If you believe that it still maintains this investment, the question then becomes: What percentage of Ripple does it own and what is it worth relative to its $12.4b market cap?

According to TechCrunch (Setting The Right Valuation For A Competitive Series A Round), “Generally, the valuation range results in the group of Series A investors taking 15-25 percent of the company.”

Original Source: Seeking Alpha

Continue Reading
Advertisement
Advertisement

Recent Posts

Copyright © 2019 The Crypto Report