Seagate shares surge after speculation over its Ripple company ownership size

Key Points
  • Seagate shares rise on a report speculating on the size of its investment in the cryptocurrency firm Ripple.
  • The storage company invested in Ripple's Series A financing round in May 2015.
The logo of blockchain company Ripple is seen at the SIBOS banking and financial conference in Toronto, Ontario, Canada October 19, 2017.
Chris Helgren | Reuters

Seagate shares rallied Monday after a report speculated on the size of its early investments in cryptocurrency company Ripple.

Seagate is an investor in Ripple, but the size of that investment could not be verified by CNBC. Seagate and Ripple did not immediately respond to requests for comment.

The data storage company's stock rose as much as 16 percent shortly after the market open before paring its gains to 6.5 percent.

The market cap of the ripple cryptocurrency is more than $80 billion even after a drop on Monday, according CoinMarketCap. It is the third-largest digital currency in the world.

The start-up owns 61 percent of the 100 billion XRP coins in existence, which are also referred to as ripple.

Seagate's investment in Ripple has been widely covered in previous years. It is listed as one of Ripple's investors on the company's website.

The data storage company invested in Ripple's Series A financing round in May 2015. It also participated in a Series B investment in September 2016. There were no details given on the size of Seagate's investments in Ripple's press release.