VivoPower invests $100 million in Ripple: A play on XRP!

VivoPower invests $100 million in Ripple: A play on XRP!

VivoPower, a Nasdaq-listed company, plans to invest $100 million in Ripple Labs to pursue a dual strategy focused on acquiring both Ripple shares and the XRP coin. This decision is part of a broader digital asset strategy by VivoPower that aims to acquire XRP at a price up to 86 percent below the current market price, as btc-echo.de reported.

According to VivoPower's Adam Traidman, purchasing Ripple shares also allows for exposure to Ripple's stablecoin RLUSD as well as other businesses. This would effectively mean VivoPower paying around $0.47 for an XRP coin, while the current market price is $3.18. With this strategy, VivoPower intends to purchase Ripple shares at prices well below market value.

Market development and stock reaction

The investment announcement came as the XRP price fell 3.8 percent from the previous day, reflecting BlackRock's rejection of an XRP spot ETF. Despite these setbacks, VivoPower's share price rose an impressive 32 percent to $5.10 in response to Ripple's new strategy. Since the beginning of the year, the VVPR share has even recorded an increase of 283 percent.

VivoPower not only plans to acquire Ripple shares, but will also be the first company listed on the US stock exchange to offer access to Ripple shares and XRP tokens. The Ripple acquisition is expected to result in a valuation of approximately $19 billion, a significant 86 percent discount compared to Ripple Labs' current market valuation of approximately $135 billion, according to the report globenewswire.com.

Strategic focus on XRP and growth potential

VivoPower has already invested $121 million directly in the Ripple coin in the spring. Ripple Labs is the largest holder of XRP, owning more than 41 billion tokens, representing approximately 41 percent of all XRP tokens issued. The company plans to hire independent auditors to review Ripple stock holdings on a quarterly basis and has hired digital asset managers and private market securities infrastructure operators to support its treasury strategy.

This change in direction from VivoPower aims to promote the growth and utility of the XRP Ledger (XRPL). With the combination of sustainable energy solutions and digital asset management, VivoPower aims to establish itself as a leading company in the industry.