XRP News Today: VivoPower Buys Ripple Shares at 86 Discount to XRP Value

VivoPower International has begun purchasing shares in its parent company, Ripple, at a significant discount to the value of Ripple’s XRP holdings. The move is part of a broader strategic shift for VivoPower, which has pivoted from a focus on sustainable energy to building a large XRP treasury. The company recently announced plans to acquire $100 million worth of privately held Ripple shares at a $19 billion valuation, providing exposure to XRP at an 86% discount relative to its current market price. This transaction allows VivoPower to effectively purchase XRP at approximately $0.47 per token, significantly below the market rate, without directly buying the cryptocurrency [1].

According to Adam Traidman, a member of VivoPower’s advisory board and former Ripple board director, the lack of liquidity in Ripple’s private shares has historically made it difficult for the company to retain top talent. While platforms like Forge offer some level of liquidity, they are limited to accredited investors and can take up to 60 days to complete trades [1]. The recent acquisition of Ripple shares by VivoPower is seen as a strategic move to augment its XRP exposure through equity rather than direct crypto purchases.

The shares being acquired are not owned by Ripple itself, a source close to the matter confirmed. This distinction is critical, as it clarifies that the purchase does not involve Ripple’s own stake in XRP, which is primarily held in escrow and totals around 42 billion tokens valued at approximately $121 billion [1]. Ripple’s XRP holdings were gifted by the XRP Ledger co-founders and are managed with a high degree of discipline, according to Traidman. This long-term stability in supply has likely influenced VivoPower’s decision to pursue equity in Ripple.

VivoPower’s pivot to XRP has been accompanied by a reevaluation of transparency and corporate governance. Traidman noted that the company is developing a transparency page to disclose its XRP holdings, though such disclosures may not apply to Ripple equity due to the nature of private share ownership. The firm has estimated that its Ripple investment will expose it to 211 million XRP, further aligning its corporate strategy with the Ripple ecosystem [1].

The timing of the investment also appears strategic. The U.S. Securities and Exchange Commission’s long-running legal case against Ripple concluded with a $125 million penalty, creating a more predictable regulatory environment. By waiting for this legal uncertainty to resolve, VivoPower may have aimed to minimize risk and ensure a smoother transaction [1].

Analysts suggest that this move could indicate a growing trend among XRP holders seeking greater influence over Ripple’s corporate structure. As companies increasingly build treasuries in digital assets, the balance between equity and crypto exposure may shift, influencing corporate governance and long-term strategic direction [1]. Ripple, in turn, continues to emphasize infrastructure development and custody solutions, aiming to attract institutional investors and support broader adoption of XRP and its associated services [3].

Sources:

[1] title: Why VivoPower Wants Ripple Shares at a Discount to Its XRP Holdings (https://decrypt.co/336262/why-vivopower-wants-ripple-shares-discount-xrp-holdings)

[2] title: XRP Price Watch: Daily Chart Signals Reversal After Double Top Pattern (https://bitcoin.com/xrp-price-watch-daily-chart-signals-reversal-after-double-top-pattern)

[3] title: Ripple's Global Co-Head of Policy on 4 Best Practices for Digital Asset Custody (https://coindesk.com/ripple-global-co-head-policy-4-best-practices-digital-asset-custody)