A U.S. Bankruptcy Court has authorized Linqto’s $130 million sale of Ripple equity, with Galaxy Digital leading the transaction through a $60 million purchase, as proceeds are directed toward compensating customers.
The court approved Linqto’s plan to sell roughly $130 million in Ripple Labs common stock to four institutional investors. Galaxy Digital accounts for the largest share at $60 million, followed by Arrington Capital with $50 million, the Private Shares Fund contributing $16 million, and GAM Alternatives Lux adding $4 million. The funds raised will be funneled into a Chapter 11 Wind-Down Trust designed to support customer recoveries.
This deal goes beyond a typical distressed liquidation. Instead, it highlights continued institutional appetite for Ripple’s private-market shares across varying price levels, even as Linqto’s bankruptcy estate works to unwind a platform that previously offered retail investors access to pre-IPO opportunities.
The development coincided with XRP rising करीब 4% overnight, reaching $1.13 and breaking above the $1.10 resistance level. Trading activity also picked up, with daily volume climbing to approximately $1.29 billion.
Ripple Equity Sale: Allocation, Pricing, and ROFR Details
The four transactions were executed at differing per-share prices. Galaxy Digital secured the largest allocation at $60 million, while Arrington Capital committed $50 million. The Private Shares Fund and GAM Alternatives Lux purchased smaller portions valued at $16 million and $4 million, respectively.
Galaxy’s allocation stands out as the biggest both in share volume and total value, according to summaries of the asset purchase agreements. Ripple waived its right of first refusal (ROFR) for Galaxy’s portion, allowing the deal to proceed without co-sale complications.
Notably, Galaxy’s entry price reflects a discount compared to the other buyers in the same transaction. This aligns with its historical strategy of accumulating Ripple exposure during periods of secondary-market inefficiency.
Importantly, this is a secondary equity transaction. It does not signal an impending IPO and has no direct implications for XRP holders or the token’s underlying economics. Ripple’s investor materials from November 2025 also confirmed that such equity sales do not affect XRP.
Linqto Bankruptcy: Context and Forge Global Dispute
Linqto ceased operations in March 2025 and filed for Chapter 11 bankruptcy in July 2025 after new leadership uncovered potential securities law violations dating back to 2020. These issues were tied to the use of special-purpose vehicles that pooled customer investments.
The bankruptcy estate includes stakes in حوالي 111 private companies with a combined valuation exceeding $500 million. On February 6, 2026, the court approved Linqto’s restructuring plan, which received about 95% customer support. The plan offers recovery through a liquidating trust, a publicly listed closed-end fund holding private shares, or a hybrid of both.
However, the recovery process has encountered a new hurdle. Bloomberg Law reports that Linqto and its Official Committee of Unsecured Creditors have filed a lawsuit against Forge Global Holdings after the firm attempted to withdraw as trustee just five days before the planned July 20 launch.
Forge attributed its withdrawal to directives from its parent company, Charles Schwab. The firm had been tasked with safeguarding customer assets, overseeing share transfers, and managing the recovery process.
The court is now being asked to enforce Forge’s contractual obligations. While this dispute could slow down asset transfers and raise legal expenses, it does not impact the validity of the Ripple share sale or XRP’s market value. For Linqto users with indirect Ripple exposure, the key concern is timing rather than asset quality.
Institutional Insight: What the Pricing Gap Signals
The transaction structure, involving four buyers with varying allocations, highlights Galaxy Digital’s dominant role through its $60 million commitment. The discount on Galaxy’s purchase likely reflects the scale of its block and the dynamics of a distressed secondary market, rather than a weaker outlook on Ripple’s valuation.
Ongoing institutional demand at these price levels—combined with Ripple’s goal of reaching a $1 billion revenue run rate by 2026—suggests that the company’s private-market valuation floor remains resilient, even under bankruptcy-related selling pressure.
This Ripple transaction is likely just the beginning. As the wind-down trust continues to liquidate assets from its broader portfolio of 111 companies, additional large-scale institutional sales may follow.
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