Worksport makes a significant investment in Bitcoin and XRP: A groundbreaking move or a risky strategy?
Worksport, a U.S. listed company specializing in automotive parts, has just announced it will invest 5 million USD in Bitcoin and XRP to diversify its assets and reduce transaction costs.
Investing in cryptocurrencies for innovation
Worksport will allocate up to 10% of excess cash from its operations to purchase cryptocurrencies, starting with 5 million USD in Bitcoin and XRP.
This move, according to CEO Steven Rossi, is not only to 'keep up with trends' but also to optimize costs and provide long-term value for shareholders.
Following the announcement, the company’s stock (ticker WKSP) rose over 6% on December 5, although it has fallen more than 50% since the beginning of the year.
Integrating payments with Bitcoin and XRP
Not stopping at investment, Worksport also plans to integrate cryptocurrency payments on its e-commerce platform, hoping to reduce transaction costs by 37%.
The company also plans to transfer profits from its money market account and a portion of future raised capital to invest in Bitcoin and XRP.
Following the trend of MicroStrategy
Worksport's strategy is influenced by the model of MicroStrategy, which has invested over 13 billion USD in Bitcoin just in the past month.
Despite previous skepticism, MicroStrategy currently has 20 billion USD in unrealized profits, becoming one of the 100 largest publicly traded companies in the U.S.
Bitcoin, which reached the milestone of 100,000 USD today, continues to assert its position but still faces significant volatility as the price quickly adjusts to 95,000 USD.
Will Worksport's move help the company turn things around or become a high-stakes gamble? Only time will tell.