Swiss firm pushes SBI to launch XRP buyback, citing undervaluation

16th February 2025 – (Tokyo) Swiss investment firm GAM Investments has called on SBI Holdings to adopt an ambitious strategy for its XRP holdings by implementing a buyback program. In an open letter to SBI CEO Yoshitaka Kitao, GAM argued that the Japanese financial giant is significantly undervalued, largely due to the market’s failure to fully account for its substantial stake in Ripple Labs and its extensive XRP reserves.

GAM highlighted a disparity between SBI’s market capitalisation, which stands at JPY 1.2 trillion, and the estimated value of its indirect Ripple holdings, which exceed JPY 1.6 trillion. The firm contends that this disconnect stems from insufficient transparency in SBI’s crypto strategy. To address this, GAM proposed that SBI regularly disclose the valuation of its XRP holdings and provide net asset value (NAV) updates to shareholders.

The centrepiece of GAM’s recommendation is an XRP buyback initiative, funded by cash flow from SBI’s banking and securities divisions. According to GAM, such a move could decrease the circulating supply of XRP, potentially boosting its market value and unlocking significant shareholder value. GAM posits that this strategy could elevate SBI’s market cap closer to JPY 3.9 trillion, a figure it views as a more accurate reflection of the company’s worth.

The proposed strategy mirrors MicroStrategy’s Bitcoin accumulation, which has bolstered the firm’s standing within the cryptocurrency space. SBI, which owns an 8–9% stake in Ripple Labs, has long championed blockchain innovation in Japan, but GAM believes the market has yet to fully acknowledge these efforts. An XRP buyback program could, in GAM’s view, be transformative, both for SBI and for the broader XRP ecosystem.

While SBI has not yet responded to the proposal, if implemented, the initiative could mark a pivotal moment for institutional involvement in XRP.

Meanwhile, Bitcoin, often heralded as digital gold, continues to grapple with scalability and utility issues. A new hybrid Layer-2 solution called PlutoChain ($PLUTO) aims to address these challenges by introducing smart contracts and decentralised applications (dApps) to Bitcoin’s network.

PlutoChain’s Ethereum Virtual Machine (EVM) compatibility could allow developers to transition Ethereum-based projects to Bitcoin, combining Bitcoin’s robust security with Ethereum’s flexibility. With two-second block times and low transaction fees, PlutoChain has the potential to make Bitcoin more practical for decentralised finance (DeFi), non-fungible tokens (NFTs), and AI-powered applications.

The platform has undergone audits by SolidProof, QuillAudits, and Assure DeFi, ensuring strong security measures. Additionally, PlutoChain’s governance model empowers users to propose and vote on network updates, fostering community-driven innovation.

Currently, Bitcoin’s DeFi market remains nascent, accounting for just 0.13% of its total market cap. PlutoChain could unlock significant opportunities by enabling faster transactions and scalable infrastructure, potentially transforming Bitcoin into a more versatile blockchain.

If SBI adopts GAM’s buyback proposal, it could reshape institutional approaches to cryptocurrency investments, particularly for XRP. Such a move would not only address SBI’s undervaluation but could also influence XRP’s supply dynamics and market price.

Simultaneously, PlutoChain’s efforts to enhance Bitcoin’s utility could redefine its role beyond a store of value, positioning it as a competitive platform for DeFi and other blockchain applications.