In an open letter to the CEO of SBI Holdings, GAM Investments has called on the Japanese financial giant to adopt an ambitious XRP-focused strategy. The Swiss investment manager has called on SBI to implement an XRP buyback program using a strategy similar to MicroStrategy’s approach to accumulating Bitcoin. In the letter, GAM claims that SBI Holdings, which holds a significant stake in Ripple Labs and its XRP holdings, is trading at a significant discount to its true net asset value (NAV).
According to GAM, SBI’s indirect holdings in Ripple, valued at more than 1.6 trillion JPY, exceed the company’s current market cap of 1.2 trillion JPY. This indicates a significant gap between the company’s market value and the hidden value of its crypto assets. GAM pointed out that the lack of clarity in SBI’s strategy regarding Ripple’s blockchain technology and its crypto investments is contributing to the company’s poor performance in the market. GAM suggests that SBI adopt a more transparent approach by publishing a daily valuation of its XRP holdings. It also called for regular updates to shareholders on its NAV components.
GAM’s most important suggestion is for SBI to implement an XRP buyback program. It called for redirecting a portion of its cash flow from its banking and securities businesses to purchase XRP directly from the market. GAM believes that such an approach will increase the value of SBI’s XRP holdings and provide long-term benefits to shareholders by reducing the supply of XRP in circulation and potentially increasing its market value.
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