- VivoPower International plans to buy $100 million in privately held Ripple Labs shares, boosting its digital asset holdings.
- The company’s stock rose over 32% following the announcement, with continued gains in after-hours trading.
- VivoPower will seek both Ripple equity and XRP tokens to broaden investor exposure.
- The purchase will use custody solutions from BitGo and Nasdaq Private Market, with independent audits for oversight.
- South Korean firm BDACS started regulated institutional custody for XRP in partnership with Ripple.
VivoPower International, a Nasdaq-listed solar power company, announced plans on Friday to buy $100 million worth of shares in privately held Ripple Labs. This decision follows two months of due diligence as the company seeks to expand its focused strategy around XRP, the digital asset connected to Ripple.
The purchase, scheduled from existing shareholders, is pending approval from Ripple’s executive management, according to a company press release. Following the news, VivoPower shares surged 32.12% to $5.10, and rose another 4.51% in after-hours trading.
According to VivoPower CEO and executive chairman Kevin Chin, the firm aims to buy a mix 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,” Chin said.
The company stated it will continue to directly acquire XRP tokens. This would make VivoPower International the first publicly listed U.S. company offering investors both Ripple equity and XRP exposure.
To secure its digital assets, VivoPower will work with BitGo for custody and use Nasdaq Private Market, a platform for private share transactions favored by Ripple. An independent auditor will conduct quarterly reviews of the Ripple holdings.
Ripple Labs launched XRP by creating 100 billion tokens, with most currently held in escrow. The company also operates other business lines, including stablecoin RLUSD and digital asset services. VivoPower estimates that buying Ripple shares at this scale may result in an implied cost of $0.47 per XRP, which they say is 86% below current market value.
The company suggested that every $10 million in Ripple shares could add about $5.15 in value per VivoPower share, noting that final benefits depend on market volatility.
In a separate move, South Korean custodian BDACS has launched regulated institutional custody services for XRP, following a partnership with Ripple earlier this year, to provide secure storage solutions for institutional investors.
For more, see the related report on SBI Holdings denying it filed for a Bitcoin-XRP dual ETF in Japan and the launch of XRP Healthcare on the Canadian stock exchange.
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