VivoPower partners with BitGo for XRP treasury strategy

NEW YORK - VivoPower International PLC (NASDAQ:VVPR), a $44 million market cap company transitioning to focus on XRP and decentralized finance solutions, has announced a strategic partnership with BitGo, a leading digital asset infrastructure provider. According to InvestingPro data, the company maintains impressive gross profit margins of nearly 75%, though it currently trades above its Fair Value. The collaboration will see VivoPower utilize BitGo’s over-the-counter (OTC) trading desk and custody platform for its digital asset treasury strategy, including an initial $100 million acquisition of XRP tokens.

VivoPower, which recently raised $121 million, will exclusively use BitGo for trading and holding its XRP assets. The partnership aims to take advantage of BitGo’s liquidity, execution capabilities, and secure cold storage infrastructure. InvestingPro analysis reveals concerning financial health metrics, with a current ratio of 0.3 indicating potential liquidity challenges. Get access to 15+ additional ProTips and comprehensive financial analysis with InvestingPro. Kevin Chin, VivoPower’s Executive Chairman and CEO, expressed confidence in BitGo’s ability to execute and safeguard the company’s treasury allocation, citing BitGo’s institutional-grade, secure-by-design custodial and trading infrastructure.

BitGo’s CEO, Mike Belshe, highlighted the institutional momentum around digital assets and expressed pride in providing the platform necessary for companies like VivoPower to confidently enter the digital asset space.

The partnership is expected to bolster BitGo’s reputation not only as a trusted custodian but also as a leading trading partner for institutions conducting large block trades. BitGo’s OTC desk offers access to global liquidity pools and discreet high-volume trade execution within a secure and compliant framework.

VivoPower has also filed a registration statement with the U.S. Securities and Exchange Commission for a public offering of its ordinary shares. Potential investors are advised to read the prospectus and other documents filed with the SEC for more complete information about the issuer and the offering.

VivoPower’s shift in strategy involves the acquisition, management, and holding of XRP digital assets to support decentralized finance infrastructure and blockchain applications. The company, founded in 2014 and listed on Nasdaq since 2016, has shown remarkable market performance with a 248% year-to-date return, though InvestingPro data indicates rapid cash burn and volatile trading patterns. The company, which operates two business units, Tembo and Caret Digital, focuses on electric solutions and power-to-x applications, respectively.

This article is based on a press release statement from VivoPower and BitGo.

In other recent news, VivoPower International PLC has made significant strides with its recent strategic moves and financial activities. The company successfully raised approximately $121 million through a private capital raise, led by notable investors including Prince Abdulaziz bin Turki Abdulaziz Al Saud. This capital is intended for the acquisition and holding of XRP digital assets, aligning with VivoPower’s strategy to focus on decentralized finance. Additionally, VivoPower has announced a strategic partnership with BitGo to support its digital asset treasury strategy, involving the acquisition of $100 million worth of XRP tokens.

In terms of mergers and acquisitions, VivoPower is evaluating a revised $200 million bid from Energi Holdings Limited for a majority stake in its subsidiary, Tembo e-LV B.V. This proposal reflects an increased enterprise valuation from a previous offer. Meanwhile, VivoPower’s subsidiary, Tembo e-LV, has received an order from The Safari Collection for electric vehicle conversion kits, furthering its commitment to sustainable tourism. VivoPower has also addressed shareholder queries regarding Energi’s buyout terms, emphasizing due diligence and the strategic nature of the offer.

These developments highlight VivoPower’s ongoing efforts to enhance its business model and financial position amid its transition towards digital asset strategies and sustainable energy solutions.

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