XRP News Today: VivoPower Shares Jump 32.12% After Announcing $100M Ripple Buy Plan

VivoPower International PLC’s shares surged by 32.12% to $5.10 on Friday following the company’s announcement of a $100 million plan to purchase equity in Ripple Labs. The Nasdaq-listed solar power firm revealed it would acquire privately held Ripple shares from existing shareholders after two months of due diligence, pending approval from Ripple’s executive management [1]. The move is part of VivoPower’s broader digital asset treasury strategy, which is focused on XRP.

According to Kevin Chin, VivoPower’s executive chairman and CEO, the company’s strategy is to diversify its holdings by combining Ripple equity with XRP tokens. This dual approach, he explained, is designed to maximize yield while reducing the weighted average cost of acquired XRP. The company will also continue to purchase XRP directly, making VivoPower the first publicly listed U.S. firm to offer investors exposure to both Ripple shares and XRP [1].

To execute the strategy, VivoPower will partner with BitGo for custody services and Nasdaq Private Market, Ripple’s designated platform for private share transactions. An independent auditor will conduct quarterly reviews of its Ripple holdings. The company also noted that its combined approach could bring the average acquisition cost per XRP down to $0.47, an 86% discount to current market prices, based solely on Ripple’s XRP reserves [1].

The firm further estimated that every $10 million in Ripple shares purchased could potentially add $5.15 in value per VivoPower share, although this is contingent on market volatility. Following the announcement, the stock gained an additional 4.51% in after-hours trading [1].

Ripple, the company behind XRP, has issued 100 billion XRP tokens at inception and has burned approximately 14 million, with 41 billion currently in escrow. In addition to XRP, Ripple operates the RLUSD stablecoin, the digital asset prime broker Hidden Road, and custodians MetaCo and Standard Custody & Trust. It also manages the Rail platform for stablecoin payments [1].

South Korean crypto custodian BDACS recently launched institutional custody services for XRP under a partnership with Ripple, aiming to provide secure storage and management solutions for the digital asset. This follows Ripple’s broader initiative to expand institutional adoption of XRP and RLUSD [1].

The move by VivoPower highlights a growing trend of traditional financial firms integrating digital assets into their treasuries. However, the valuation benefits and market impact of such strategies remain subject to broader crypto market conditions and regulatory developments.

Source: [1] VivoPower Shares Jump on $100M Ripple Buy Plan to Expand XRP Strategy

Url: https://cointelegraph.com/news/vivopower-shares-jump-ripple-xrp-strategy