VivoPower, a public clean energy company, announced plans to acquire shares of Ripple Labs worth $100 million. This investment aims to enhance its cryptocurrency holdings in XRP.
The $100 Million Purchase Plan
VivoPower disclosed agreements to purchase $100 million worth of Ripple shares from current shareholders, pending final approval from Ripple's management. These investments are part of the company's long-term strategy to build an XRP-focused treasury, having raised $121 million earlier this year to fund its crypto initiatives.
Backing Ripple’s Growth and Stablecoin Push
VivoPower's interest in Ripple is not solely about acquiring XRP at a discounted price; the company believes in Ripple's long-term growth potential, comparing it to Circle, the developer of USDC. Ripple is expanding its reach in the stablecoin market with the launch of its own stablecoin RLUSD and partnership with BNY Mellon to manage reserves.
VivoPower Becomes the First to Link Ripple Shares and XRP
Upon completing the deal, VivoPower will be the first publicly traded U.S. company to offer investors exposure to both Ripple shares and XRP tokens. The company confirmed its plans to continue buying and holding XRP directly, in addition to its investments in Ripple. This purchase comes as more public companies are making significant investments in XRP, bringing total corporate commitments close to $1 billion.
VivoPower's investment in Ripple shares, alongside its strategy to enhance XRP assets, underscores the increasing interest in cryptocurrencies among public companies. Ripple's recent legal victory with the SEC also paves the way for further growth opportunities for the firm.
