XRP grabs attention with VivoPower's planned $121 million investment
VivoPower International PLC, a publicly listed energy company, announced a significant financial transformation on Friday. The firm aims to become the first public company to adopt an XRP-focused treasury model, following a $121 million private placement. The move was led by Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud, who invested $100 million.
The energy company sold 20 million shares at $6.05 each, slightly above its previous closing price. The placement is expected to help VivoPower diversify its operations and capitalize on the growing digital asset market. The raised funds will be allocated toward acquiring and holding XRP, investing in the XRP Ledger (XRPL) ecosystem, debt reduction, and general working capital needs.
VivoPower also aims to leverage XRP for cross-border payments and other blockchain applications across its subsidiaries, such as electric vehicle brand Tembo and digital mining firm Caret Digital. The company plans to spin off these businesses by the end of Q3 2025.
The offering was managed by Chardan as the sole placement agent, and the shares were sold under Regulation S. It should be noted that the deal still requires shareholder approval, with a meeting scheduled for June 18, 2025.
In a statement, Prince Abdulaziz expressed his support for the strategic focus on XRP and the objective to contribute to building the XRPL ecosystem. Meanwhile, VivoPower's Executive Chairman, Kevin Chin, considered the investment from the Saudi prince a major milestone, sharing a common vision with regards to scaling a publicly listed XRP-focused treasury company.
The adjustment in VivoPower's business strategy could potentially increase institutional interest in XRP and expand real-world use cases for the fourth-largest cryptocurrency by market value. However, it also indicates a shift away from traditional energy operations, which may have far-reaching implications for the company's performance.
In other news, the U.S. has eased 2022 crypto investment limits for 401(k) retirement plans, signaling a growing acceptability of digital assets within the financial sector.
[1] "VivoPower International PLC (Nasdaq: VVPR) Announces $121 Million Private Share Placement to Adopt XRP Treasury Strategy," Business Wire, Apr 15, 2022.[2] "VivoPower Raises $121 Million to Go XRP Treasury and De-Energy," The Block, Apr 15, 2022.[3] "Saudi Prince Invested $100 Million in VivoPower's XRP Treasury Strategy," Coindesk, Apr 15, 2022.[4] "U.S. Eases 2022 Crypto Investment Limits for 401(k) Retirement Plans," Forbes, Mar 14, 2022.[5] Enrichment Data, Apr 15, 2022.
- VivoPower International PLC, in a significant move towards digital asset adoption, aims to become the first public company adopting an XRP-focused treasury model, selling 20 million shares and raising $121 million. The funds will be allocated towards acquiring XRP, investing in the XRP Ledger ecosystem, debt reduction, and working capital needs.
- While the energy company plans to use XRP for cross-border payments and various blockchain applications across its subsidiaries, the adjustment in VivoPower's business strategy could potentially increase institutional interest in XRP and expand use cases for the fourth-largest cryptocurrency by market value. Meanwhile, the deal still requires shareholder approval.
- The U.S., on a similar note, has eased 2022 crypto investment limits for 401(k) retirement plans, signaling a growing acceptability of digital assets within the financial sector, suggesting a potential broader acceptance and integration of cryptocurrencies in traditional finance.
