GAM Investments, a Swiss-based investment manager, has suggested that SBI Holdings should adopt a more aggressive strategy focused on its significant holdings in XRP to enhance shareholder value.
GAM Investments has pointed out that SBI's indirect holdings in Ripple are valued at over JPY 1.6 trillion, significantly exceeding the company's current market capitalization of JPY 1.2 trillion.
To address the undervaluation issue, GAM has recommended that SBI implement an XRP buyback program using a portion of its cash flow. This move could potentially increase the value of XRP and benefit shareholders in the long run.
GAM has also emphasized the need for SBI to clarify its position regarding Ripple's blockchain technology and the impact of its crypto investments on the company's stock performance.
The success of similar strategies, such as those employed by Metaplanet, serves as a compelling case for SBI to follow suit.
SBI Holdings currently holds an 8-9% stake in Ripple Labs and has been a long-time advocate for blockchain and cryptocurrency adoption.
The market has yet to fully recognize the value of SBI's XRP holdings, and GAM's proposal aims to bridge this gap.
The filing of a spot XRP ETF by WisdomTree with the U.S. Securities and Exchange Commission (SEC) has generated excitement in the market, with expectations that it could pave the way for broader acceptance of XRP as an investment vehicle.
However, BlackRock has confirmed that it has no immediate plans to launch an XRP ETF.
The actions taken by SBI Holdings in response to GAM's recommendations could have significant implications for both the company and the broader crypto ecosystem.