After announcing plans to purchase $100 million worth of Ripple shares, the Nasdaq-listed solar company VivoPower International PLC's stock price rose 32.12% to $5.10 on Friday, expanding its XRP-focused digital asset strategy.
After two months of due diligence, the company will purchase Ripple shares directly from existing shareholders, pending approval from Ripple executives, the company mentioned in a press release on Friday.
VivoPower CEO Kevin Chin stated: "Our investment strategy is to purchase a combination of Ripple shares and XRP tokens to optimize returns and lower the weighted average cost of XRP."
VivoPower will also continue to purchase XRP tokens directly, becoming the first publicly listed U.S. company to offer investors dual exposure to Ripple equity and XRP.
VivoPower chooses BitGo and Nasdaq for Ripple share custodianship
To manage this strategy, VivoPower collaborates with BitGo and the Nasdaq private market, with its Ripple holdings audited quarterly by independent auditors.
Ripple initially created 100 billion XRP, has since destroyed 14 million, and currently holds 4.1 billion, mainly for custodianship. Additionally, the company operates the RLUSD stablecoin and other digital asset-related services.
VivoPower's management believes that combining strategies will lower its average acquisition cost of each XRP to $0.47, based solely on Ripple's XRP holdings, excluding other business values.
According to company data, each $10 million purchase of Ripple shares could potentially increase VivoPower shareholders' value by about $5.15 per share, although this depends on market fluctuations.
BDACS launches institutional XRP custodial services in South Korea
On Tuesday, South Korean crypto custodian BDACS launched regulatory custodial services for XRP, following a partnership with Ripple in February. This initiative leverages Ripple Custody (enterprise-level solutions) to provide secure storage and management features for institutions.
Earlier this year, Ripple partnered with South Korean crypto custodian BDACS to provide institutional custodial support for XRP and RLUSD.
