MoneyGram’s crypto deal with Ripple sends it soaring 155%
Ripple will become MoneyGram’s main partner for cross-border transactions using digital assets, cutting operating costs and working-capital needs
London — MoneyGram International soared as much as 155% in early trading after a tie-up with blockchain-technology company Ripple. The rally is reminiscent of late 2017, when a wave of small-cap stocks saw valuations multiply as they re-branded as blockchain companies.
The difference is that MoneyGram is an established company with about 2,400 staff and $1.4bn in annual revenue, not a re-branded unprofitable iced tea-maker or a three-man IT firm based out of a business park in Essex, England. Not to mention that Ripple’s deal comes with real money: it invested $30m in shares and warrants and has an option to invest a further $20m...
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