- VivoPower to acquire Ripple shares worth $100 million.
- VivoPower’s strategy includes Ripple equity and XRP exposure.
- XRP price implied at $0.47, an 86% discount.
VivoPower International plans to acquire $100 million in Ripple Labs shares, gaining exposure to Ripple equity and XRP tokens at an implied price of $0.47, pending executive approval.
This move positions VivoPower as the first US public company offering dual exposure, potentially influencing cryptocurrency treasuries and impacting market valuation of XRP.
VivoPower International, listed on Nasdaq, plans to acquire $100 million worth of privately-held Ripple Labs shares. This dual exposure involves both Ripple equity and XRP tokens. The acquisition awaits approval from Ripple executive management, marking a significant first in US public markets.
Key players include Kevin Chin, CEO of VivoPower, and Ripple Labs. The deal offers XRP exposure at $0.47 per token, significantly below market price. Ripple Labs, holder of a substantial XRP supply, underscores the transaction’s importance.
Market reactions saw VivoPower’s shares increase by 32%, indicating investor confidence in digital asset integration. The transaction involves BitGo for custody and the Nasdaq Private Market for handling share trades. This move aligns with a broader trend in corporate crypto exposure.
Financial implications include a valuation of Ripple at approximately $19 billion. The deal’s size reflects an unconventional approach, merging company shares with tokens. There is potential ripple effect, though no regulatory updates are available currently.
“Our portfolio construction strategy is to buy a combination of Ripple shares and XRP tokens. This will allow us to optimize for yield maximization while also minimizing the weighted average cost of XRP acquired.” — Kevin Chin, Executive Chairman and CEO, VivoPower
Possible outcomes could involve changes in digital asset treasury models, setting precedents for other public companies. Historical trends like Tesla’s Bitcoin strategy illustrate higher interest in such diversification. The regulatory environment remains critical as these models develop further.
