XRP News Today: VivoPower to Buy Ripple Shares in $100M Move Boosting XRP Exposure by 86%

VivoPower International PLC, a Nasdaq-listed company, has announced plans to acquire a major stake in Ripple Labs, a move that would grant the firm indirect exposure to approximately 211 million XRP tokens, valued at around $696 million at current market prices [1]. The transaction, which follows two months of due diligence, is part of a broader strategy to combine direct and indirect ownership of XRP with equity in Ripple [1].

Under the proposed deal, VivoPower intends to allocate $100 million to purchase Ripple shares from existing shareholders, subject to final approval from Ripple’s management [1]. The structure of the deal is designed to reduce the company’s effective cost per XRP token. According to Kevin Chin, Executive Chairman and CEO of VivoPower, the dual strategy of acquiring both XRP and Ripple equity could lower the average cost of XRP acquisition by up to 86% compared to open-market purchases [1]. Adam Traidman, former Ripple board member and current chair of VivoPower’s advisory board, noted the potential for substantial cost savings through this indirect approach [1].

The investment also provides VivoPower with exposure to Ripple’s broader business operations, which extend beyond XRP. These include the RLUSD stablecoin, as well as acquisitions such as the prime brokerage platform Hidden Road and digital asset custodians Metaco and Standard Custody and Trust Company [1]. The company also evaluated these initiatives prior to finalizing its investment strategy.

The announcement triggered a 16.47% surge in VivoPower’s stock price on Monday, August 11, as investors reacted positively to the strategic move [1]. The valuation of the Ripple stake, based on the proposed $100 million investment, implies a weighted average valuation of approximately $19 billion, significantly lower than the estimated $135 billion value of Ripple’s XRP holdings alone [1]. Importantly, this calculation does not account for Ripple’s other businesses, which are included as part of the overall package.

VivoPower emphasized that it would take direct ownership of Ripple shares, avoiding the use of special-purpose vehicles. The purchase will be supported by BitGo and Nasdaq Private Market, which will provide custody and facilitate the transaction [1].

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[1] https://coinmarketcap.com/community/articles/689b52b9b50d914bd96d20f9/