U.S. fintech company Ripple has bought a stake in the European cryptocurrency exchange Bitstamp in a new step toward international expansion.
Ripple has not disclosed anything about the transaction so far, and Galaxy Digital’s latest quarterly report revealed that Galaxy sold its Bitstamp stake to Ripple in the first quarter of this year, but the cryptocurrency hedge fund’s He said he had been advised by Pantera Capital.
Pantera Capital is one of the most prominent cryptocurrency hedge funds in the United States, led by prominent crypto investor Dan Morehead.
It is unclear why Pantera Capital chose to sell its Bitstamp stake.
Ripple CEO Brad Garlinghouse recently said the company is looking to expand further through acquisitions and plans to use more than $1 billion in reserves to do so. made it
“We have over US$1 billion in cash on our balance sheet and we want to grow this through acquisitions both internally and informally,” said Garlinghouse on stage at the Dubai Fintech Summit. Told.
At the time, he specifically pointed to countries like the UAE and Switzerland, which he said were “making investment clear to entrepreneurs and allowing giants like Ripple to enter.”
Purchasing Bitstamp shares would align with the company’s goal of expanding its business internationally through the acquisition of Ripple.
Ripple’s move was highlighted by Galaxy Digital President and Chief Investment Officer Christopher Ferraro during Galaxy’s earnings call on May 9, according to call transcripts.
The purchase of Bitstamp shares has sparked speculation within the community, with many wondering whether Ripple intends to further develop its On-Demand Liquidity (ODL) service or focus on its Liquidity Hub (LH) solution. people have doubts
In particular, an influencer known as Lathof Kahnemann drew attention to the acquisition through a tweet, highlighting that it was a strategic one and not just a stock purchase.
“Bitstamp is also headquartered in London,” the influencer noted.