XRP joins crypto treasury trend as VivoPower raises $121 million to launch XRP reserve
- Nasdaq-listed VivoPower raised $121 million in a private offering with investors.
- The company will use most of the proceeds to establish its XRP treasury strategy.
- XRP is down nearly 2% despite the announcement, stretching its weekly losses above 5%.
XRP slipped more than 2% on Wednesday as VivoPower announced plans to become the first publicly traded company to adopt XRP as a treasury reserve asset. The announcement follows the company's completion of a $121 million private offering.
VivoPower poised to be first XRP treasury-backed company
Electrical energy company VivoPower announced that it entered into an agreement with investors for a private offering. The company issued an aggregate of 20 million shares at an average price of $6 per share, generating proceeds of approximately $121 million.
The investment was led by His Royal Highness Prince Abdulaziz bin Turki Abdulaziz Al Saud, Chairman of Eleventh Holding.
"We are honored to be leading this capital raising for a company that will be the first in the world to execute an XRP-focused treasury strategy," Prince Abdulaziz said in a press release on Wednesday.
VivoPower stated that it will purchase XRP with a majority of the funds as part of its broader strategy to establish an XRP treasury reserve. This is the first time a public company has launched an XRP treasury strategy.
"As a long-term holder of XRP myself, we all share a common vision and objectives with regards to how a publicly listed XRP-focused treasury company can be scaled for the benefit of the XRP community and VivoPower stakeholders alike," noted VivoPower Executive Chairman Kevin Chin.
The closing of the offering will be determined by several factors already laid down by the company.
Adam Traidman, former Ripple board member and CEO of SBI Ripple Asia, has joined VivoPower as Chairman of the Board of Advisors.
The development follows a major shift in institutional appetite for digital assets, as more companies are adding cryptocurrencies as a primary reserve asset. XRP now joins other top cryptocurrencies as corporate reserve assets, including Bitcoin, Ethereum and Solana.
It also comes at a time when several US exchange-traded fund (ETF) issuers are awaiting a decision from the Securities and Exchange Commission (SEC) on their XRP ETF filings. Bloomberg analysts Eric Balchunas and James Seyffart stated in April that XRP ETFs have an 85% chance of approval by regulators.
XRP is down nearly 2% in the past 24 hours, despite the announcement, extending its weekly loss to above 5%.
Author
Michael Ebiekutan
FXStreet
With a deep passion for web3 technology, he's collaborated with industry-leading brands like Mara, ITAK, and FXStreet in delivering groundbreaking reports on web3's transformative potential across diverse sectors. In addi
