VivoPower International PLC (NASDAQ:VVPR) saw its stock climb 9% following news of its intent to acquire shares in Ripple Labs, enhancing its strategy centered around XRP digital assets in its treasury.
The company has allocated an initial $100 million to buy privately held Ripple shares after completing a two-month due diligence process. These purchases remain subject to final approval from Ripple’s executive leadership. Alongside acquiring shares, VivoPower plans to continue directly purchasing and holding XRP tokens.
At current market valuations, the $100 million investment in Ripple shares equates to an effective exposure of roughly 211 million XRP tokens, valued at about $696 million. This approach enables VivoPower to secure XRP at an implied cost of $0.47 per token, reflecting an 86% discount compared to buying XRP directly on the open market.
This move positions VivoPower as the first publicly traded U.S. company offering investors access to both Ripple equity and XRP tokens. VivoPower will hold full legal ownership of the acquired Ripple shares and will appear as a registered shareholder on Ripple’s capitalization table.
“The opportunity to acquire Ripple shares and materially average down the acquisition price per XRP is in line with our objective of building a sustainable long-term treasury model that translates into substantial potential upside for shareholders,” said Kevin Chin, Executive Chairman and CEO of VivoPower.
To facilitate its treasury strategy, VivoPower has partnered with digital asset custodians and private market securities platforms such as BitGo and Nasdaq Private Market, LLC, Ripple’s preferred partner for share transactions.
Ripple currently holds about 41 billion XRP tokens, valued near $135 billion at today’s prices. The company also manages several business divisions, including the RLUSD stablecoin, prime brokerage firm Hidden Road, and digital asset custodians Metaco and Standard Custody & Trust Company.
VivoPower International stock price
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