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VivoPower to Boost XRP Treasury with $100M Ripple Share Investment
In a strategic move to bolster its position in the burgeoning crypto market, VivoPower has announced that it will be investing $100 million in Ripple shares. This significant investment is expected to significantly boost the company’s treasury of digital assets.
According to reports, VivoPower will purchase the Ripple shares directly from existing shareholders, with the transaction pending final approval from Ripple’s executive team. Following this deal, VivoPower will become the first publicly traded U.S. company to offer direct access to Ripple shares and XRP tokens for investors.
It is worth noting that the investment comes at a weighted average valuation of $19 billion, representing an impressive 86% discount compared to the market value of Ripple’s XRP holdings. This substantial markdown allows VivoPower to acquire XRP at a significantly lower implied price compared to its prevailing market price.
The decision is reflective of VivoPower’s optimistic outlook on Ripple’s long-term potential and its faith in the crypto market’s growth prospects. By acquiring $100 million worth of Ripple shares, the company is effectively hedging its bets on the digital asset space.
The news comes amidst an intriguing backdrop as Ripple has recently emerged victorious from a legal tussle with the U.S. Securities and Exchange Commission (SEC). The outcome, which saw the SEC drop its lawsuit against Ripple, has sent shockwaves throughout the crypto market.
As expected, VivoPower’s share price responded positively to this development, surging by 32% to reach $5.10. This drastic increase can be attributed to investors’ renewed faith in the company’s strategic shift into the digital asset space and its potential for substantial returns.
The partnership is also reflective of VivoPower’s commitment to expanding its portfolio into various digital assets and further solidifying its position within the renewable energy sector.
In conclusion, this deal marks a significant milestone for both parties involved.
Source: cryptotale.org
