VivoPower has announced the acquisition of $100 million in Ripple shares, attracting significant attention within the cryptocurrency community.
Deal Details
VivoPower reported its intention to acquire private shares of blockchain company Ripple for $100 million. This deal would allow VivoPower to gain indirect access to Ripple's substantial XRP holdings. Following the announcement, VivoPower's shares surged by more than 9%, indicating increased investor interest.
Market Trends
With the acquisition of Ripple shares, VivoPower will be the only US-listed company providing simultaneous access to both Ripple stocks and XRP tokens. It is expected that the share purchase will enable VivoPower to secure approximately 211 million XRP tokens, corresponding to roughly $696 million at current market prices. Notably, VivoPower is acquiring Ripple shares at a valuation of approximately $19 billion, representing an 86% discount compared to the company's current XRP reserves.
Additional Opportunities
In addition to its large XRP reserve, Ripple owns several other businesses, including Hidden Road and Metaco. The company also recently finalized a deal to acquire Rail, a popular stablecoin infrastructure provider. In May, VivoPower announced launching a reserve with the popular altcoin totaling $121 million.
VivoPower's investment in Ripple highlights the increasing interest in crypto assets and the potential opportunities they present for investors. However, questions remain regarding the legitimacy of such offerings.
