TLDR
- VivoPower announced it will acquire $100 million worth of privately held Ripple shares.
- The company will purchase 211 million XRP at an 86 percent discount from the current market price.
- This acquisition will make VivoPower the first US-listed company to be exposed to both Ripple shares and XRP.
- The transaction will be conducted directly from existing Ripple shareholders after two months of due diligence.
- VivoPower will work with BitGo for custody and Nasdaq Private Market to handle transactions.
VivoPower announced plans to acquire $100 million worth of Ripple shares and 211 million XRP at a major discount. The Nasdaq-listed firm confirmed it secured an 86% reduction from XRP’s current market price. This move will make VivoPower the first US-listed company to be exposed to both Ripple shares and XRP.
VivoPower to Acquire Ripple Shares
VivoPower stated it would purchase privately held Ripple shares worth $100 million from existing shareholders. The company will not use a special-purpose vehicle but will conduct the acquisition directly. This purchase will follow a two-month due diligence period and is subject to Ripple board approval.
The transaction includes a share in Ripple’s wider operations, including the RLUSD stablecoin business and units like Hidden Road and Metaco. VivoPower confirmed it worked with BitGo for custody and Nasdaq Private Market for transaction handling. Executive chairman Kevin Chin said the strategy “combines Ripple shares and XRP tokens to optimize yield for investors.”
According to the company, the acquisition also positions it to benefit from Ripple’s 41 billion XRP reserves. Ripple releases 1 billion XRP monthly to manage supply and price stability. VivoPower highlighted that this strategic mix of assets could improve long-term profitability.
XRP Purchase at Significant Discount
The purchase includes 211 million XRP at an average cost of $0.47 per token. Without the discount, VivoPower would have received only 30 million XRP at $3.29. Based on current market prices, the stash’s value has already increased to approximately $696 million.
For every $10 million spent on Ripple shares, VivoPower estimates a $5.15 per share growth for its shareholders. This discounted rate applies exclusively to VivoPower, allowing significant capital efficiency. The company indicated that acquiring Ripple’s entire 41 billion XRP would cost about $19 billion at this rate.
The deal also aligns with VivoPower’s broader cryptocurrency treasury strategy. The firm seeks to reduce its investors’ average acquisition cost of XRP. Chin added that this approach “ensures better profitability through strategic asset allocation.”
Growing XRP Treasury Trend
The move comes as other companies expand into XRP treasury holdings. Trident Digital Tech Holdings announced plans to raise $500 million for its own XRP treasury. China’s Webus also committed $300 million to the acquisition of XRP.
Firms like Wellgistics Health and Hyperscale Data have adopted similar strategies. This trend reflects growing corporate interest in XRP as part of diversified asset reserves. VivoPower’s acquisition marks one of the largest such deals by a Nasdaq-listed entity.
The post $100M Move: How VivoPower Landed 211M XRP at an Unseen Discount appeared first on Blockonomi.
Source: https://blockonomi.com/100m-move-how-vivopower-landed-211m-xrp-at-an-unseen-discount/