- VivoPower invests $100 million in Ripple shares to boost its XRP treasury and digital assets.
- The deal gives VivoPower exposure to Ripple at a discounted rate of $0.47 per XRP token.
- VivoPower’s stock rises 32% following its Ripple share acquisition and strategic crypto move.
Nasdaq-listed VivoPower has made a strategic decision to boost its Ripple (XRP) holdings by acquiring $100 million worth of Ripple shares. The investment can be considered part of VivoPower’s strategy to position itself more towards digital currencies like XRP.
The acquisition will allow VivoPower to acquire Ripple shares at an implied cost of $0.47 per XRP token. The company has already made considerable progress in this direction, with an investment of $100 million in XRP on Flare Network earlier this year. This acquisition will also fortify the strength of VivoPower in the expanding market of digital assets.
VivoPower’s $100M Ripple Share Acquisition
VivoPower, in a press release, has confirmed that it would purchase $100 million of shares directly from Ripple shareholders. The acquisition is pending final approval from Ripple’s executive team. Once approved, VivoPower will become the first publicly traded U.S. company offering direct access to Ripple shares and XRP tokens for investors.
The most interesting aspect behind this acquisition is the fact that Ripple dominates the XRP market, with 41 billion XRP tokens worth $135B. VivoPower’s share purchase comes at a weighted average valuation of $19 billion, offering an 86% discount compared to the market value of Ripple’s XRP holdings.
The deal will give VivoPower a chance to acquire XRP at a significantly lower implied price compared to the prevailing market price. The decision reflects VivoPower’s optimistic outlook on Ripple’s long-term potential. The company is betting on the rising valuation of Ripple and the expansion of the general crypto market.
VivoPower noted that for every $10 million worth of Ripple purchased, shareholders could potentially see a gain of $5.15 per share. This increment is, however, subject to the volatility in the market. The company’s investment strategy indicates its confidence in the further development of Ripple and its bullish position regarding the cryptocurrency industry on the whole.
VivoPower Shares Surge After Ripple’s Legal Victory and Strategic Investment
News of the acquisition of Ripple shares comes amid positive news on Ripple. Recently, the company has settled with the U.S. Securities and Exchange Commission (SEC) over its legal tussle with XRP. The SEC dropped its lawsuit against Ripple on August 7, positioning the company for a clear regulatory future.
After the announcement, the stock of VivoPower increased by 32.12% to reach $5.10. This sharp stock rise is indicative of the faith that investors have in VivoPower’s latest action. The fact that the company can purchase Ripple shares at a discount makes the company attractive to investors.
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Ripple is also expanding its business divisions, aligning with VivoPower’s strategy. Besides possessing XRP tokens, Ripple is engaged in stablecoin initiatives, such as RLUSD, and also recently partnered with BNY Mellon to offer custody services. It possesses a prime brokerage for digital assets as well and is currently acquiring the stablecoin platform Rail.
It is a significant move in VivoPower’s corporate development, as the crypto sector represents a new market. The company that specializes in solar and renewable energy is now venturing into digital assets. VivoPower’s significant investment in Ripple shares showcases the growing trend of integrating traditional industries with the crypto market. This strategic direction enables the company to exploit the growth potential of the cryptocurrency market and the growth of its renewable energy businesses.
