VivoPower has acquired its Ripple stocks worth USD 100M, which it finds to be a daring move toward digital asset exposure. The deal provides the Nasdaq traded corporation with about 211M XRP tokens. The implied price of each token is $0.47 which makes 86 percent discount in comparison to the current market price. Such an acquisition will enhance VivoPower as an exclusive entity capable of providing Ripple exposure and XRP equity and become the first company listed on the U.S. stock market with this two-fold operating capacity.
Direct Ownership and custodial actions
VivoPower is a direct legal title owner rather than being a chain of partners that must be jumped through to reach the desirable end result as seen through many deals, through their costly SPV structures. This method eliminates numerous layers of embedded charges whereby transparency is increased. The company also collaborates with BitGo as custodian and Nasdaq Private Market as a share management service to protect its property. Holdings are verified by quarterly independent audits and this increases the investor confidence in the integrity and structure of the deal.
Valuation Ownership Structure Interest The importance of this is in the Deal Structure and Valuation Advantage and the element of valuation ownership structure interest. It is because of their 41B XRP holding and a wide range of operations that Ripple is valued. The purchase cost VivoPower 19B to purchase Ripple who has a market value of its reserves of XRP that amounted to 135B. VivoPower will not have to deal with exchange slippage anymore when it buys Ripple shares rather than XRP itself and that may lead to favorable prices in an OTC arrangement. Analysts estimate that an extra cash investment of 10Mill/10M may be accompanied by a profit increment of 5.15 per VivoPower unit in terms of stable investment returns value to the shareholders.
Industry Impact and Market Response
The announcement of the acquisition caused a sudden rush in the stock price of VivoPower and the stock jumped over 32%. The step signifies an increasing tendency of institutions to hop into the world of crypto through OTC trades, avoiding retail markets prices. It further highlights the revolution of corporate treasuries, as corporations diversify into blockchain resources. This transition to digital assets will make VivoPower a leader in the field that will possibly serve as a role model and motivate other publicly traded entities to pursue the strategy VivoPower is doing.
The post VivoPower Acquires $100M Ripple Shares for XRP Exposure appeared first on Coinfomania.
