Over $700 million of XRP assets set to be safeguarded as part of VivoPower's groundbreaking agreement with Ripple for a share purchase
VivoPower Acquires $100 Million in Ripple Shares, Gaining Indirect Exposure to XRP
VivoPower, a Nasdaq-listed solar power company, has made a strategic move by acquiring $100 million worth of privately held shares in enterprise blockchain company Ripple. This move grants VivoPower indirect exposure to Ripple's substantial XRP holdings, valued at approximately $135 billion.
The acquisition allows VivoPower to hold both Ripple equity and XRP tokens, creating a dual-asset strategy that blends traditional equity investment with digital asset exposure. This unique positioning enables VivoPower to participate in potential XRP price appreciation while benefiting from Ripple’s broader business growth.
One of the key advantages of this deal is the cost-effectiveness of VivoPower’s XRP acquisition. By purchasing Ripple shares directly from existing shareholders, rather than buying XRP tokens outright or using special-purpose vehicles, VivoPower reduces its weighted average cost for XRP acquisition by 86%. This means acquiring XRP exposure at $0.47 instead of the market price around $3.29, avoiding embedded fees linked to direct token acquisition and offering cleaner, on-balance-sheet exposure for public shareholders.
The shares are set to be purchased pending Ripple’s board approval, with custody and securities infrastructure managed through partnerships with BitGo and Nasdaq Private Market. Regular quarterly independent audits are planned for transparency and regulatory compliance, ensuring a sophisticated approach for integrating crypto assets into a regulated public company structure.
Gamza Khanzadaev, a pro-Ripple lawyer, has issued a one-word verdict on the $100 million XRP deal: "Brilliant." Some analysts, however, have expressed concerns about the legitimacy of XRP offerings.
Despite these concerns, the deal highlights growing institutional interest in Ripple and XRP, following positive developments such as Ripple’s legal victories and partnerships (e.g., with BNY Mellon). Analysts projecting XRP price targets between $11 and $15 see VivoPower’s move as pioneering, potentially serving as a model for how traditional firms can enter digital asset markets via equity exposure.
VivoPower’s management believes this financial engineering creates significant value. They estimate that for every $10 million spent on Ripple shares, about $5.15 in value could accrue to VivoPower shareholders, leveraging the discount and growth prospects of XRP and Ripple’s business.
In summary, VivoPower’s acquisition provides it indirect XRP exposure through Ripple equity at a steep discount, combining financial innovation and market opportunity that could enhance shareholder returns while offering a regulated, transparent way to participate in the crypto ecosystem.
- VivoPower, being a Nasdaq-listed solar power company, has purchased $100 million worth of Ripple shares, giving it indirect access to XRP tokens and potential exposure to their substantial valuation of approximately $135 billion.
- The acquisition grants VivoPower a dual-asset strategy that includes both Ripple equity and XRP tokens, allowing for participation in XRP price appreciation and Ripple's business growth.
- By acquiring Ripple shares directly from existing shareholders, VivoPower reduces its weighted average cost for XRP acquisition by 86%, securing XRP exposure at a lower price compared to the market price.
- The shares acquisition is subject to Ripple's board approval and will be managed through partnerships with BitGo and Nasdaq Private Market, with regular independent audits planned for transparency and regulatory compliance.
- VivoPower's move into XRP and Ripple equities represents a pioneering approach for traditional firms to enter the digital asset market, offering a regulated, transparent path to participate in the crypto ecosystem.
