XRP News Today: VivoPower Allocates $100 Million to XRP-Based Treasury System

VivoPower International, a company listed on the Nasdaq, has made a bold strategic move by allocating $100 million to an XRP-based treasury system. This initiative is designed to generate institutional yield through decentralized protocols on the Flare Network. The company's plan involves building an XRP-based treasury system that leverages protocols like Firelight to generate income, which will then be reinvested into its XRP holdings. This decision represents a significant and unconventional bet on the utility of digital assets for a publicly traded company, especially given the current financial pressures highlighted by recent metrics.

To implement this plan, VivoPower has secured $121 million in private capital to fund the XRP acquisition. The company will partner with BitGo, an institutional-grade custodian, to manage the storage and trading of the $100 million XRP allocation. VivoPower will utilize Flare Network’s FAssets system, which allows XRP to be integrated with smart contracts and used in decentralized applications while maintaining security. This partnership marks the first institutional-scale use of FAssets in the XRP ecosystem.

VivoPower’s strategy also includes the use of Ripple’s upcoming RLUSD stablecoin as its main cash-equivalent asset. This move is intended to stabilize the company’s XRP treasury. Kevin Chin, Executive Chairman and CEO of VivoPower, emphasized the fiduciary duty to shareholders, stating, “It’s no longer enough to simply hold XRP; the duty to our shareholders is to make it productive.”

Despite recent financial metrics indicating a “WEAK” overall financial health with 11 risk indicators and a current ratio of 0.3, VivoPower is proceeding with its XRP investments and plans for a potential special dividend related to its subsidiary, Tembo. The company has set June 12, 2025, as the ex-dividend date for these distributions, with shareholders on record by June 13, 2025, being eligible. VivoPower has also filed a registration statement with the U.S. Securities and Exchange Commission to offer its ordinary shares to the public, supporting its ongoing digital asset and XRP-focused plans. However, the company has noted that there is no guarantee that a special dividend will be paid.

In addition to its XRP strategy, VivoPower is reviewing a new $200 million offer from Energi Holdings Limited for a 51% stake in its subsidiary, Tembo e-LV B.V. This proposal increases the previously assigned enterprise value. VivoPower, founded in 2014 and listed on Nasdaq since 2016, is maintaining its other business units, Tembo and Caret Digital, alongside its new XRP-focused initiatives.