Revolut CEO Nik Storonsky borrows $250M against his stake
Revolut CEO Nik Storonsky can borrow up to $250 million against his 29% stake in the company, which has a valuation of $45 billion. The company is letting its co-founder and CEO tap into his ownership position as it eyes ever-larger valuations.
Borrowing vs Selling Shares
Selling shares reduces ownership, while borrowing lets you keep the upside if the company's valuation continues to climb. However, borrowing comes with the risk of margin calls if things go south.
Revolut's Growing Valuation
Revolut's valuation has climbed to $45 billion, making Storonsky's stake worth roughly $13 billion on paper. The company has over 45 million customers globally and has been building out its product offering from currency exchange and stock trading to crypto services and now full banking.
Performance-Based Equity Awards
Storonsky's ownership stake could increase with performance-based equity awards. These awards are reportedly tied to Revolut achieving valuations near $500 billion by the end of 2025.
Market Context
Secondary share sales have become more common as founders of high-valuation private companies seek liquidity. Revolut has secured its full UK banking licence and has been attracting institutional investors at increasingly higher valuations in successive funding rounds.
