VivoPower Stock Rises After Ripple Announcement

Key Takeaways

• VivoPower shares surged 32% after announcing a $100 million Ripple Labs investment plan.

• The company will acquire both Ripple shares and XRP tokens, pioneering a dual-asset blockchain treasury strategy.

• Kevin Chin, VivoPower’s CEO, views this as a way to optimize returns and reduce average acquisition costs.

• Ripple holdings will be custodied by BitGo and reviewed quarterly by an independent auditor.

• VivoPower’s implied average XRP acquisition cost is $0.47, nearly 86% below market.

VivoPower Bets Big On Ripple & XRP

In a recent press release, VivoPower International PLC confirmed plans to purchase $100 million worth of Ripple Labs shares from existing shareholders.

This investment, pending Ripple’s executive approval, follows two months of due diligence.

VivoPower Shares Surged Following The Announcement

Source: Google Finance

A Dual-Treasury Strategy

According to Kevin Chin, Executive Chairman and CEO of VivoPower, the company’s strategy is to build a dual-asset treasury by acquiring both Ripple equity and XRP tokens.

In Kevin’s words:

“Our portfolio construction strategy is to buy a combination of Ripple shares and XRP tokens. This will allow us to optimize for yield maximization while also minimizing the weighted average cost of XRP acquired.”

This hybrid approach not only increases the company’s blockchain exposure but also positions VivoPower to optimize returns while minimizing downside risks associated with individual assets.

Continued Accumulation Of XRP Tokens

In addition to its Ripple share acquisition, VivoPower confirmed ongoing purchases of XRP directly from the open market. This move further cements its unique status as a pioneer in blockchain-integrated corporate finance.

Post-Announcement Market Response

VivoPower’s stock climbed 32.12% to $5.10 during regular trading hours on Friday. The momentum carried into after-hours trading, where shares gained an additional 4.51%, according to Google Finance.

Secure Custody With BitGo & Nasdaq Private Market

To manage the Ripple share acquisition securely, VivoPower will collaborate with BitGo, a leading crypto custodian, and Nasdaq Private Market, Ripple’s preferred trading partner for private share transactions.

An independent auditor will review Ripple-related holdings on a quarterly basis, ensuring transparency and regulatory compliance.

Why Ripple?

As a blockchain-based payment protocol, Ripple Labs has created 100 billion XRP at its inception. Of this, approximately 41 billion XRP remain in escrow, with 14 million burned over time.

Ripple also operates a growing portfolio of digital asset businesses, including:

• RLUSD, a U.S. dollar–backed stablecoin

• Hidden Road, a digital asset prime brokerage

• MetaCo and Standard Custody & Trust, digital custodians

• Rail, a stablecoin payment infrastructure platform

Valuation Strategy

VivoPower’s management estimates that the combined acquisition strategy could reduce its average XRP acquisition cost to an implied $0.47 per token, which represents an 86% discount to the current market rate. This figure excludes the valuation of Ripple’s non-XRP business assets.

Moreover, VivoPower claims that each $10 million investment in Ripple equity could add approximately $5.15 per share in shareholder value, subject to market conditions and volatility.

South Korea Embraces Institutional XRP Custody

BDACS, a South Korean crypto custodian, recently launched regulated institutional custody services for XRP.

Source: X (@BDACSKorea)

The rollout follows a February partnership with Ripple and leverages Ripple Custody, an enterprise-grade platform for secure storage of XRP and RLUSD.

This development signals growing global institutional interest in XRP, aligning with VivoPower’s forward-looking investment thesis.

FAQ

What is VivoPower?

VivoPower International PLC is a Nasdaq-listed solar energy company with an expanding focus on digital assets, particularly through blockchain-based investments.

Why is VivoPower investing in Ripple?

The company aims to diversify its treasury strategy by acquiring both Ripple equity and XRP tokens, with the goal of optimizing yield and reducing acquisition costs.

How will VivoPower store its Ripple assets?

VivoPower is partnering with BitGo for custody and using the Nasdaq Private Market to facilitate the acquisition of Ripple shares from private holders.

What’s the impact on shareholders?

VivoPower believes that the Ripple investment could significantly enhance shareholder value, estimating a potential $5.15 per share value increase for every $10 million invested, subject to market conditions.

Is this investment approved?

The purchase of Ripple shares is still pending approval from Ripple’s executive team.