- SBI urged to adopt an XRP buyback strategy similar to MicroStrategy’s Bitcoin approach.
- Transparency demanded from SBI on XRP holdings and its broader crypto business strategy.
- Investor frustrations grow as SBI’s unclear crypto communication undermines Ripple’s potential.
GAM Investments, a prominent investor in SBI Holdings, is urging the company to adopt a strategy similar to MicroStrategy’s Bitcoin approach except with XRP. This unconventional request, reminiscent of MicroStrategy’s Bitcoin approach, highlights growing frustrations with SBI’s handling of its crypto assets and its overall communication strategy.
GAM’s Critique of SBI’s Crypto Approach
GAM Investments has publicly expressed dissatisfaction with SBI’s performance, particularly regarding its crypto-related assets. SBI owns an 8-9% stake in Ripple, which is associated with XRP.
The investor believes SBI is failing to leverage the significant potential of its Ripple and XRP holdings. According to GAM, the combined value of SBI’s Ripple stake and XRP reserves theoretically surpasses SBI’s current market capitalization. This discrepancy, they argue, is eroding shareholder value.
Additionally, GAM criticized SBI’s communication strategy, calling it unclear and overly complex. They specifically pointed out that SBI’s company presentations lack transparency regarding its crypto strategy and Ripple’s blockchain technology. Consequently, GAM has demanded that SBI clarify its crypto position, update shareholders on its XRP holdings, and improve communication.
A Proposal for XRP Buybacks
The most significant aspect of GAM’s request is the call for an XRP buyback program. Instead of issuing cash dividends to shareholders, GAM suggested that SBI use its cash reserves to purchase XRP. They believe this strategy would mirror MicroStrategy’s approach to Bitcoin, which significantly boosted its shareholder value. Implementing such a program, GAM argues, would enhance SBI’s net asset value (NAV) and demonstrate a clear commitment to crypto.
Demands for Transparency and Improved Reporting
Beyond the buyback program, GAM also emphasized the need for transparency. They requested SBI publish a live valuation of its XRP holdings and provide a detailed crypto business strategy. To facilitate better communication, GAM even offered to assist SBI’s investor relations department in building a user-friendly webpage to report critical crypto data.
Will SBI Respond?
While GAM’s demands are bold, their success hinges on the size of their influence within SBI. If GAM holds significant assets, SBI may feel compelled to respond. However, SBI’s decision will likely depend on broader shareholder sentiment and market dynamics.