Vivopower Expands Digital Asset Financing Strategy
Vivopower International Plc, a company registered on NASDAQ, has announced its intention to broaden its XRP-focused digital asset financing approach by investing $100 million in shares of Ripple Labs, which saw a 32.12% increase in stock price to $5.10 on Friday.
This decision follows a two-month due diligence period, confirming that Vivopower will buy Ripple shares directly from current shareholders. In a press release on Friday, the company stated, “Our portfolio construction strategy is to purchase a combination of Ripple shares and XRP tokens. This allows us to optimize for maximum yield while minimizing the weighted average cost of the acquired XRP.”
Additionally, Vivopower plans to keep acquiring XRP tokens directly, making it the first publicly traded U.S. company to offer investors access to both Ripple equity and XRP.
Vivopower shares saw a further increase of 4.51% in after-hours trading as reported by Google Finance.
Strategic Custody Management
To implement this strategy, Vivopower intends to collaborate with preferred partners for private share transactions, using BITGO and NASDAQ Private Market for custody services. Independent auditors will review Ripple Holdings on a quarterly basis.
Since its inception, Ripple has created 100 billion XRP, has burned around 14 million tokens, and retains about 41 billion mainly in escrow. Besides XRP, Ripple is involved with the RLUSD Stablecoin, the Digital Asset Prime Broker Hidden Road, custodians like Metaco and Standard Custody & Trust, and the stablecoin payment platform Rail.
Management at Vivopower asserts that the overall strategy could lower the average acquisition cost of XRP to $0.47, which represents an implied discount of 86% from the current market price.
The company estimates that for every $10 million spent on Ripple shares, Vivopower’s shareholder value could see an increase of $5.15 per share, although this is subject to market volatility.
XRP Custody Service Launched in South Korea
On Tuesday, BDACS, a cryptocurrency administrator in South Korea, rolled out a regulatory custody service for XRP, building on a partnership with Ripple established in February. This service employs Ripple Custody to offer secure storage and management solutions for agencies handling XRP.
Earlier this year, Ripple Labs collaborated with South Korean Crypto Custodian BDACS to provide institutional custody for XRP and its US dollar-backed stablecoin, RLUSD.
