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SBI Holdings Reaffirms $41.2B Stake in Ripple Amidst XRP Price Slump

Created at 31 Jul · 1:56 PM1 source↑ Market-relevant
IN SHORT

SBI Holdings confirmed its continued investment in Ripple, valuing its stake at $41.2 billion despite recent XRP price declines. The company reported a strong first quarter overall, though its crypto asset business incurred a loss.

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Key Numbers

$41.2 billionSBI Holdings' stake in Ripple
¥6.6 trillionValuation of SBI's Ripple stake
¥1.4 billionSBI's crypto asset business pre-tax loss
¥571.0 billionSBI's first quarter revenue
¥225.8 billionSBI's first quarter profit before tax
¥148.1 billionSBI's net profit attributable to shareholders
149.9%Year-over-year net profit growth
29%SBI Group's ROI on equity
3 millionTarget cryptocurrency accounts after Bitbank acquisition
¥870 billionTarget assets under custody after Bitbank acquisition

Who's Involved

SBI Holdings
Japanese financial services group reaffirming its investment in Ripple
Ripple
Company in which SBI Holdings holds a significant stake
XRP
Cryptocurrency whose price has recently declined
Senator Cynthia Lummis
Indicated hope for CLARITY Act vote before August recess
Senator John Thune
Senate Majority Leader who kept a place for the Clarity Act on the agenda
B2C2
Global crypto market maker owned by SBI Group, reported profitable
SBI VC Trade
SBI Group's platform offering crypto lending and support services
Bitbank
Cryptocurrency exchange planned for acquisition by SBI Group

↳ Why This Matters

SBI Holdings' continued commitment to its large Ripple stake signals confidence in the company's long-term prospects despite market volatility, potentially influencing investor sentiment towards XRP and the broader digital asset space.

Key facts

  • SBI Holdings maintains a $41.2 billion stake in Ripple.
  • The value of SBI's Ripple stake is ¥6.6 trillion.
  • SBI's crypto asset business reported a ¥1.4 billion pre-tax loss.
  • SBI's overall revenue for the first quarter was ¥571.0 billion.
  • SBI plans to acquire Bitbank to expand its cryptocurrency accounts.

SBI Holdings has reaffirmed its substantial investment in Ripple, stating its stake is valued at ¥6.6 trillion ($41.2 billion) despite a recent slump in XRP's price. The company disclosed this during its first-quarter earnings call, noting that while the cryptocurrency business is sluggish, the value of its Ripple shareholding remains significant.

During the call, SBI acknowledged that its crypto asset business posted a pre-tax loss of ¥1.4 billion. However, the global crypto market maker B2C2, also part of the SBI Group, was profitable. The firm is actively building its digital asset presence, having introduced crypto lending and support services via its JPYSC stablecoin through SBI VC Trade. SBI is also pursuing the acquisition of Bitbank, aiming to increase its cryptocurrency accounts to approximately 3 million and assets under custody to ¥870 billion.

The remarks regarding Ripple come amidst deliberations in the U.S. Senate on the CLARITY Act. Senator Cynthia Lummis expressed optimism that a vote on the bill could occur before the August recess, with Senate Majority Leader John Thune reportedly keeping a place for it on the agenda.

SBI Holdings reported its most successful first quarter to date, with revenue growing to ¥571.0 billion and profit before tax rising to ¥225.8 billion. Net profit attributable to shareholders reached ¥148.1 billion, a 149.9% increase year-over-year, with an ROI on equity of 29%.

Frequently asked questions

SBI Holdings' stake in Ripple is valued at ¥6.6 trillion, equivalent to approximately $41.2 billion.

SBI's crypto asset business reported a pre-tax loss of ¥1.4 billion, though its crypto market maker B2C2 was profitable.

The CLARITY Act is a bill being deliberated in the U.S. Senate that could impact the cryptocurrency market.

SBI Holdings plans to expand its crypto services, including lending, and is seeking to acquire Bitbank to grow its user base and assets under custody.

What Happens Next

01The U.S. Senate may vote on the CLARITY Act before the August recess.
02SBI Holdings plans to complete its acquisition of Bitbank.
03SBI aims to expand its cryptocurrency accounts and assets under custody.

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Cadence

How It Developed

SBI Holdings reaffirmed its investment in Ripple, with its stake valued at $41.2 billion.
The company reported a successful first quarter with significant revenue and profit growth.
SBI's crypto asset business posted a pre-tax loss of ¥1.4 billion.
SBI is expanding its digital asset services, including crypto lending and planned acquisition of Bitbank.

Sources

T1
Breaking: Japan’s SBI Holdings Reaffirms $41.2B Stake In Ripple Despite XRP Price WeaknessCoinGape

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