VivoPower Acquires Initial $100M of Ripple Shares in Strategic Enhancement to XRP Treasury Strategy

VivoPower to purchase $100M of Ripple shares as part of its XRP-focused digital asset treasury strategy. The acquisition encompasses definitive agreements with current Ripple shareholders, subject to final approval from Ripple's executive management. VivoPower will continue to directly acquire and hold XRP tokens, taking advantage of Ripple's 100 billion token supply and mild deflationary nature.

VivoPower International PLC (Nasdaq: VVPR), a solar power company, has announced a significant strategic move by acquiring $100 million worth of privately held Ripple Labs shares. This acquisition is part of VivoPower's broader XRP-focused digital asset treasury strategy, aimed at optimizing yield and minimizing the cost of acquiring XRP tokens.

The acquisition, following a two-month period of due diligence, involves definitive agreements directly with current Ripple shareholders, pending final approval from Ripple’s executive management. This move positions VivoPower as the first and only U.S.-listed company to offer exposure to Ripple shares and XRP tokens to its shareholders.

VivoPower expects that for every $10 million of Ripple shares acquired, an estimated $5.15 per share of value could accrue to VivoPower shareholders. This strategy is based on the current market prices of VVPR, XRP, and the weighted average purchase price of Ripple shares, all of which are subject to volatility and change.

The acquisition aligns with VivoPower's goal of reducing the average acquisition cost per XRP token, taking advantage of Ripple's 100 billion token supply and its mild deflationary nature. Ripple has burned approximately 14 million XRP tokens to date, leaving around 41 billion tokens, primarily held in escrow.

VivoPower will work with BitGo for custody and Nasdaq Private Market, Ripple’s preferred partner for private share transactions, to manage this strategy. An independent auditor will review its Ripple holdings quarterly.

The strategic transformation into a XRP-focused digital asset enterprise positions VivoPower to capitalize on the growing decentralized finance (DeFi) infrastructure and blockchain applications. However, the acquisition is subject to final approval from Ripple’s executive management, introducing uncertainty regarding the completion of the deal.

The press release emphasizes the potential risks and uncertainties associated with forward-looking statements, potentially impacting shareholder confidence in VivoPower's strategy. Despite these risks, VivoPower's management remains optimistic about the long-term value growth opportunities presented by its investment in Ripple.

For further information, please refer to the press release distributed by GlobeNewswire [1].

References:
1. [1] https://cointelegraph.com/news/vivopower-shares-jump-ripple-xrp-strategy
2. [2] https://www.quiverquant.com/news/VivoPower+International+PLC+Announces+Strategic+Acquisition+of+Ripple+Labs+Shares+to+Enhance+XRP-Focused+Digital+Asset+Treasury