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Cryptocurrency Surge Raises Questions About Company Valuations

Note: Share price is for preferred stock; Sources: CoinMarketCap, Company filings, The Information reporting

Investors are finding yet another way to bet on the cryptocurrency boom: buying up stock in a well-known cryptocurrency company on private marketplaces.

Investment funds and money managers for wealthy individuals have bid up shares of Ripple, the company behind the cryptocurrency XRP, to more than 10 times its previous price, valuing the private company at more than $3 billion in some transactions. Ripple’s holdings of XRP could be worth more than $70 billion on paper, based on Tuesday’s exchange rate.

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Correction: An earlier version of this story incorrectly implied that XRP was created after Ripple, the corporate entity, was started. XRP was launched prior to the formation of the company.

Eric Jardine commented on this article.
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