There are some circulating rumors among crypto commentators suggesting that Ripple has significantly boosted its bid for Circle by four times, though nothing has been confirmed yet.
Remember that recent report? It got quite a bit of attention. Ripple was reportedly considering an acquisition of Circle, the company behind USDC, for between $4 billion and $5 billion. Bloomberg mentioned that Circle turned down the offer, focusing instead on upcoming IPO plans.
Interestingly, Circle, with its own RLUSD, which has a market cap of $317 million, deemed the initial offer inadequate compared to USDC’s hefty $61.7 billion.
Did Ripple really increase its bid for Circle to $20 billion?
Claims popped up on X, stating that Ripple had upped its offer to an eye-watering $20 billion—a four-fold increase. These claims quickly gained traction among crypto commentators, especially with posts shared on May 2.
Cointelegraph even tweeted about the $20 billion rumors but later retracted the post due to the lack of official confirmation. In the midst of the excitement, a spokesman for Circle declined to provide any comment, citing regulatory limitations tied to the SEC’s quiet period.
However, skepticism is in the air. A validator from the unique node list in XRPL, known as Veterinarian, advised market participants to tread carefully regarding the $20 billion rumors, emphasizing that neither Ripple nor Circle has validated them.
Why Easya co-founders think the $20 billion offer is unrealistic
On another note, Dom Kwok, co-founder of Web3 education startup Easya, shared his perspective on why this $20 billion offer seems far-fetched. Drawing from his background with Goldman Sachs and Blackstone, Kwok argued that such a figure is really hard to believe.
There’s a lot of confusion about @maru / @ripple. Having worked at @goldmansachs and @blackstone, I’ve got insights into how acquisitions work.
TLDR: Ripple’s final offer will likely be between $6 billion and $6.5 billion.
Why? A typical acquisition…
– dom (bull/ish) | easya (@dom_kwok) May 2, 2025
He elaborated that a $5 billion valuation makes more sense, considering Circle’s anticipated IPO, and it’s in line with Ripple’s initial offer.
Moreover, he pointed out how mergers and acquisitions generally function in financial markets. According to Kwok, acquisition offers often come with a premium enticing the target company. Typically, these premiums range from 20% to 30% above the initial valuation. This means that Ripple’s reasonable final offer would likely fall between $6 billion and $6.5 billion, reflecting that expected premium on Circle’s projected $5 billion IPO valuation.
Kwok also clarified some misunderstandings about Circle’s finances. The company manages $60 billion in collateral backing its issued stablecoin but doesn’t actually own the collateral. Instead, it earns revenue through the interest generated by these funds, which is what underpins its financial assessments.
Even with the solid logic brought by experts like Kwok, investors and industry watchers should stay open-minded. The $20 billion valuation seems unsubstantiated, but equally, there’s no public confirmation or denial from either Ripple or Circle.
Until one of the companies makes an official statement, the true status of negotiations remains unclear. So, it’s wise for market participants not to jump to conclusions—whether to accept or deny these rumors.
Disclaimer: This content is informative and shouldn’t be considered financial advice. The views expressed may reflect the author’s personal opinions and do not represent the views of the organization. Readers are encouraged to do their own research before making any investment decisions. TotalNews is not responsible for any financial losses.
