VivoPower announces a $100M Ripple shares acquisition to strengthen XRP portfolio, aiming for long-term shareholder value and digital asset growth.
VivoPower International PLC, a company focused on sustainable energy, has announced plans to acquire $100 million worth of Ripple shares. This move is part of a larger strategy to enhance its digital asset portfolio, particularly in XRP. After two months of careful due diligence, VivoPower made deals with existing Ripple shareholders. Ripple is currently waiting for its management to finalize these transactions.
VivoPower Becomes First U.S. Public Company to Buy Ripple Shares and XRP
Ripple share purchase is an impressive move for VivoPower, which is the first listed company in the United States to expose people to both Ripple shares and XRP tokens. VivoPower will purchase Ripple shares directly such that it is the absolute owner and is registered as a shareholder in the Ripple cap table. The company does not particularly buy the shares in special-purpose vehicles, which attract some extra charges.
The Ripple itself owns a significant amount of the XRP market with around 41 billion tokens of XRP, most of which are in escrow. This coin distribution continues to be a significant asset in the case of Ripple in the digital assets sphere. Also, Ripple owns a number of other companies, such as RLUSD, a stablecoin; Hidden Road, a digital asset prime broker; MetaCo; and Standard Custody and Trust Company. Ripple recently acquired Rail, a stablecoin payment platform as well.
The strategy of VivoPower will enable it to bring value to its shareholders through purchasing XRP tokens at a much cheaper price. VivoPower estimates that every 10 million spent in Ripple shares will add a value of $5.15 to each share of its shareholders. This plan gives a chance to buy XRP at a significantly lower price than the prevailing market value. The company will keep on acquiring the XRP tokens directly and in equal measure with the Ripple shares in order to have a balanced strategy towards long-term development.
Related Reading: Nature’s Miracle Unveils XRP Treasury Program and Payments
VivoPower to Buy Ripple Shares at 86% Discount
Kevin Chin, the Executive Chairman and CEO of VivoPower, highlighted the long-term potential of the acquisition. He added that the possibility to buy Ripple stock and substantially reduce the price per XRP fits into the mission of establishing a sustainable treasury model, which would provide significant returns to the shareholders.”
Adam Traidman, Ripple ex-board member and Advisory Board Chairman of VivoPower, clarified, buying Ripple shares gives a chance to buy XRP at a discount as high as 86 per cent of the cost of buying XRP directly on the market. It also provides VivoPower with an interest in the Ripple stablecoin business, and other businesses, including Hidden Road and Rail.”
Ripple is the biggest XRP owner as it possesses 41 billion tokens that cost about 135 billion dollars. VivoPower will be able to buy Ripple shares at approximately 19 billion valuation which is an 86 percent discount over the net worth of XRP alone. This discount is also considerable, which makes the acquisition especially beneficial to VivoPower and, hence, creates the possibility of added value to the shareholders.
Ultimately, VivoPower has purchased $100 million worth of Ripple shares is a step in the right direction towards the firm moving on with its plans of increasing its holdings of digital assets. Through the purchase of Ripple shares as well as XRP tokens at attractive prices, VivoPower expects to generate value to its shareholders in the long run. This step also makes VivoPower a major player in the emerging digital asset market that has a significant potential increase in the years to come.
The post VivoPower to Acquire $100M in Ripple Shares to Strengthen XRP Strategy appeared first on Live Bitcoin News.
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