VivoPower Purchases Ripple Equity Worth $100 Million for XRP Investment Exposure
VivoPower, a Nasdaq-traded corporation, has made a significant move in the crypto industry by acquiring $100 million worth of privately held Ripple shares, at an effective 86% discount to XRP's current market price. This strategic investment grants VivoPower exposure to approximately 211 million XRP tokens, with an average cost of $0.47 per token.
The announcement has been met with a positive market response, as VivoPower's shares jumped more than 32% following the news. This surge reflects strong investor enthusiasm for the company's dual exposure to Ripple equity and XRP tokens, making it the first U.S. public company to hold both.
The acquisition is part of a broader trend of institutional investors committing capital to XRP and Ripple through specialized funds and structured digital asset exposure, signaling increased mainstream acceptance within traditional finance. VivoPower's move could serve as a model for other publicly traded entities to follow.
The implied price of each token in the acquisition is $0.47, while the current market price of XRP is significantly higher, implying a market value near $696 million. Analysts estimate that for every $10 million invested in Ripple shares, VivoPower shareholders could see over $5 in value accretion per share, indicating strong potential returns based on the favorable acquisition price.
The strategic investment also positions VivoPower as a potential leader in the field, as the company transitions into digital assets. The acquisition and subsequent stock jump demonstrate the potential of over-the-counter (OTC) trades as a means for institutions to invest in crypto, bypassing retail market prices.
To protect its property, VivoPower has collaborated with BitGo as its custodian and Nasdaq Private Market for share management services. The move highlights the transformation of corporate treasuries, as corporations are increasingly diversifying into blockchain resources.
The acquisition follows Ripple’s resolution of a major legal dispute with U.S. regulators, which has renewed institutional confidence in both Ripple and XRP's adoption in payments and custody infrastructure. Ripple’s ongoing growth in global markets (Singapore, Dubai) and its ventures in custody and stablecoins indicate a strengthening ecosystem, further justifying VivoPower’s strategic investment.
In summary, VivoPower's $100 million Ripple share acquisition has been met with a positive market response, boosting its stock and signaling increased institutional confidence in Ripple’s ecosystem and XRP’s future within the crypto industry, while providing a novel hybrid investment vehicle for public shareholders. The trend of institutions investing in crypto through OTC trades could accelerate the transformation of corporate treasuries, inspiring other publicly traded entities to diversify into blockchain resources.
VivoPower's strategic investment in Ripple shares and XRP tokens, through the acquisition of $100 million worth of privately held shares, demonstrates the potential of institutions using over-the-counter (OTC) trades to invest in crypto, bypassing retail market prices. This move, coupled with Ripple's ongoing growth in global markets and ventures in custody and stablecoins, indicates a strengthening ecosystem, making it an attractive destination for blockchain-focused technology and finance.
