VivoPower raises $121 million to develop an XRP-focused treasury, marking a milestone in public companies. XRP's historical price peaked at $3.84 in January 2018 but remains a key asset. VivoPower plans to contribute to the XRPL ecosystem and promote decentralized finance solutions.
The Nasdaq-listed company, VivoPower International, announced the sale of 20 million shares at a price of $6.05, allowing it to raise $121 million to buy and hold XRP and develop a treasury. It would be the first public company in the world to launch a treasury in Ripple (XRP). The closing of the offering is subject to certain conditions, including shareholder approval and the satisfaction of customary closing conditions. The company aims to accumulate XRP and also contribute to the development of the XRPL (XRP Ledger) ecosystem, with the goal of implementing decentralized finance (DeFi) solutions in the real world.
This step puts VivoPower at the forefront of corporate adoption of XRP, especially since the cryptocurrency is expected to be one of the five that the U.S. government accumulates as part of its Strategic Reserve of Digital Assets. VivoPower's decision to focus on XRP highlights the growing interest in the cryptocurrency and its adoption among companies looking to diversify their treasuries. With a clear focus on accumulating digital assets, the company seeks not only to strengthen its own assets but also to collaborate in driving the infrastructure of XRPL for the development of DeFi solutions. This strategy could serve as a model for other companies looking to incorporate digital assets in a more structured and future-oriented manner.
Through this move, VivoPower not only secures a significant stake in the digital asset world but also follows the trend of large corporations starting to view XRP as a stable and strategic asset. Additionally, the company plans to spin off its operational subsidiaries, such as Tembo, the electric vehicle company, and Caret Digital, dedicated to digital asset mining, in the third quarter of 2025.
Following the announcement, VivoPower's shares rose from $6.18 to $7.45, subsequently settling at $6.69. Meanwhile, XRP increased from $2.23 to $2.25, while its market capitalization rose to $132.5 billion.
The price of XRP depends on various factors, such as the mass adoption of its technology and its regulation. Its price is expected to evolve positively as developments in XRPL consolidate and XRP integration in decentralized finance takes shape. However, market fluctuations can influence its future value.
VivoPower is one of the first publicly traded companies to establish an XRP-focused treasury. This move could inspire other corporations to adopt similar strategies, using XRP as an asset to diversify their treasuries and strengthen their presence in the digital asset market.
