VivoPower to Adopt XRP as Treasury Reserve Asset After $121 Million Private Offering

VivoPower, a Nasdaq-listed company, has secured $121 million through a private offering to investors. The company intends to allocate a significant portion of these funds to establish an XRP treasury strategy, marking a pioneering move for a publicly traded entity.

• VivoPower raised $121 million in a private offering.
• The company plans to use the funds to establish an XRP treasury strategy.
• XRP has declined despite the announcement.

Despite the announcement, XRP experienced a decline of over 2% on Wednesday. This extends its weekly losses beyond 5%.

VivoPower Poised to Become First XRP Treasury-Backed Company

VivoPower announced an agreement with investors for a private offering. The company issued 20 million shares at an average price of $6 per share, resulting in approximately $121 million in proceeds.

The investment was spearheaded by His Royal Highness Prince Abdulaziz bin Turki Abdulaziz Al Saud, Chairman of Eleventh Holding.

“We are honored to lead this capital raise for a company that will be the first in the world to execute an XRP-centric treasury strategy,” Prince Abdulaziz stated in a press release.

VivoPower plans to purchase XRP with the majority of the funds, integrating it into a broader strategy to establish an XRP treasury reserve. This marks the first instance of a public company launching an XRP treasury strategy.

“As a long-term holder of XRP, we all share a common vision and goals regarding how a publicly traded, XRP-centric treasury company can scale for the benefit of the XRP community and VivoPower stakeholders alike,” noted VivoPower Executive Chairman Kevin Chin.

The closing of the offering is subject to several factors already outlined by the company.

Adam Traidman, a former Ripple board member and CEO of SBI Ripple Asia, has joined VivoPower as Chairman of the Advisory Board.

This development reflects a growing institutional interest in digital assets, with more companies incorporating cryptocurrencies as primary reserve assets. XRP now joins other major cryptocurrencies, including Bitcoin, Ethereum, and Solana, as corporate reserve assets.

This also coincides with several U.S. exchange-traded fund (ETF) issuers awaiting a decision from the Securities and Exchange Commission (SEC) on their XRP ETF applications. Bloomberg analysts Eric Balchunas and James Seyffart suggested in April that XRP ETFs have an 85% chance of regulatory approval.

Despite the announcement, XRP has decreased by nearly 2% in the last 24 hours, extending its weekly loss to over 5%.

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