Seagate, which is well known to produce high quality hard disks which offers good solution to data storage. Reports have however indicated that the company has invested in Ripple. Seagate is also seen as one of the pioneers of the cryptocurrency and also one of the early institutional investors in the currency.
Ripple which has been fighting with Ethereum about who is in control of the second place in the cryptocurrency field according to market cap has more than $90 billion according to Coin market Cap. The company was created using the Ripple Network, and the creator company has about 61% of the total ripple coins which are about 100 billion.
Ripple has been gaining popularity and has grown in more than 1000% in 2017 alone which saw it challenge Ethereum for the second position in market cap. The coin is currently very volatile and despite having gone down in 2018 it still controls over $180 billion on the market.
The reports of investment in Ripple saw Seagate’s stock price move up. The reports indicate that Seagate now owns about 4% of the stake in Ripple. Based on the current price of Ripple if the reports are true then that would indicate that Seagate is holding about $7 billion in cryptocurrency.
The investment is said to have come in 2014 during Ripple’s series A investing around $26 million and in Ripple’s series B in 2016 investing around $55 million. Seagate is said never to have sold any of its coins and is still holding on to them.
After the report became public the stock price of Seagate quickly rose by 12% on Monday. The value is now settled back at 10%. The company had been named among the early investors in Ripple even though it was not clear whether they had held on their coins until now.
XRP is seen to be a coin with a lot of potential and that’s probably the reason it overtook Ethereum when it comes to market value. This may be a huge gain to Seagate if the coin continues to make it positive gains. Seagate has however not commended on the reports and remains tight lipped.