VivoPower’s recent acquisition of $100 million in Ripple shares grants them unique access to 211 million XRP tokens, making them the only U.S.-listed company with this dual exposure.
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VivoPower becomes the only U.S.-listed company with both Ripple shares and indirect exposure to Ripple’s massive XRP token reserve.
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The $100M Ripple stake gives VivoPower exposure to 211 million XRP tokens at a discounted valuation of $0.47 per token.
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Ripple’s assets include prime brokerage Hidden Road, custodian Metaco, and recently acquired stablecoin infrastructure provider Rail.
VivoPower’s acquisition of $100M in Ripple shares provides unique access to 211M XRP tokens, marking a significant move in the crypto market.
What is VivoPower’s Acquisition of Ripple Shares?
VivoPower has announced the purchase of $100 million worth of shares in Ripple, the enterprise blockchain company known for its significant XRP holdings. This acquisition gives VivoPower rare indirect access to Ripple’s large reserve of XRP tokens, making it the only U.S.-listed company with exposure to both Ripple equity and XRP.
How Does This Acquisition Impact VivoPower?
The newly acquired Ripple shares correspond to roughly 211 million XRP tokens. Based on current market prices, the value of those tokens is about $696 million if sold on the open market. The deal values Ripple at approximately $19 billion, giving VivoPower exposure to XRP at just $0.47 per token.
Discounted Valuation and Additional Assets
VivoPower stated that this arrangement provides an 86% discount compared to Ripple’s total XRP holdings, which are currently valued at around $135 billion. Besides its cryptocurrency reserves, Ripple owns other businesses, including prime brokerage firm Hidden Road and digital asset custodian Metaco. Ripple has also recently expanded its operations by acquiring Rail, a company specializing in stablecoin infrastructure.
Following the announcement, VivoPower shares increased by more than nine percent in a single day. Over the past five days, the company’s stock price has risen by approximately 40 percent, reflecting strong investor interest in the deal.
Broader Corporate Interest in XRP
The move aligns with a growing trend of corporate engagement with XRP. In May, VivoPower secured a total of $121 million to create a reserve in the popular digital asset. Other companies, such as Trident Digital Tech Holdings, Webus International Limited, and Wellgistics Health, have also taken steps to integrate XRP into their financial strategies.
With this acquisition, VivoPower stands alone among U.S.-listed companies in offering shareholders exposure to both Ripple shares and XRP tokens. This dual access may appeal to investors seeking cryptocurrency-related opportunities within traditional equity markets.
Conclusion
VivoPower’s strategic acquisition of Ripple shares not only positions them uniquely in the market but also highlights the increasing corporate interest in cryptocurrency assets. As the landscape evolves, this move could pave the way for more companies to explore similar opportunities.
Frequently Asked Questions
How does VivoPower’s acquisition affect its stock?
Following the acquisition announcement, VivoPower’s stock surged by over nine percent, indicating strong investor confidence in the deal.
What is the significance of XRP in corporate finance?
XRP is increasingly being integrated into corporate financial strategies, offering companies a way to leverage digital assets for liquidity and operational efficiency.
