Florida-based Wellgistics Health, Inc, a pharmaceutical distribution and healthcare company, has filed with the U.S. SEC to adopt XRP as part of its treasury management strategy. The company aims to become the first publicly traded U.S. Healthcare company to hold XRP in its financial reserves.
Company Plans to Integrate XRP
Earlier in May, the company secured a $50 million Equity Line of Credit from LDA Capital to support its XRP adoption plans. Wellgistics plans to issue debt securities or raise capital to gradually increase its XRP holdings.
Strategy and Risks of Using XRP
Furthermore, Wellgistics plans to integrate blockchain-based payment solutions leveraging the XRPL. A part of this strategy is to use XRP as collateral for loans to improve the company's financial stability. Attorney Bill Morgan noted that the recent SEC filing is not solely about holding XRP as a reserve.
Changing the Perception of XRP in Business
Some experts, including former SEC official Marc Fagel, have expressed doubts about the reality of Wellgistics' strategy, given its low revenues and losses. However, Morgan argues that this could be part of a larger trend of companies using cryptocurrency in business, as seen with Tesla and MicroStrategy.
Wellgistics' filing with the SEC may change the narrative that XRP has no utility. The real value of the company's strategy will reveal itself only over time, whether it demonstrates practical applications of XRP in business operations or simply uses it as a means to attract investment.
