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DUBAI & LONDON - VivoPower International PLC (NASDAQ:VVPR) announced a partnership with Flare Network to generate yield on its digital assets, beginning with an initial phase of $100 million in XRP holdings.
The agreement represents the first major implementation of VivoPower’s new corporate strategy focused on XRP-centric treasury management. The company plans to generate yield through protocols on Flare, such as Firelight, and reinvest that income back into its core XRP holdings. InvestingPro data reveals concerning financial metrics, including a weak current ratio of 0.3, suggesting potential challenges in meeting short-term obligations.
"It’s no longer enough to simply hold XRP; the duty to our shareholders is to make it productive," said Kevin Chin, Executive Chairman and CEO of VivoPower.
The partnership utilizes Flare’s FAssets system, which allows XRP to be used in smart contract applications while maintaining its security model. This marks the first institutional-scale validation of the system as a programmable utility layer for the XRP ecosystem.
VivoPower’s strategy includes holding Ripple’s forthcoming RLUSD stablecoin as its primary cash-equivalent reserve to ensure stability across its digital treasury.
The company’s transformation to an XRP-centric treasury is backed by several global shareholders, including Prince Abdulaziz bin Turki bin Talal Al Saud of Saudi Arabia, according to the press release statement.
Flare Network, which has a $1.9 billion coin market capitalization and is backed by Ripple Labs, has already shown traction in the retail sector through partners like Uphold, a digital asset platform serving over 10 million users.
VivoPower, founded in 2014 and listed on Nasdaq since 2016, describes itself as undergoing a strategic transformation to become "the world’s first XRP-focused digital asset enterprise" while maintaining its sustainable energy solutions business units, Tembo and Caret Digital. With an overall Financial Health Score rated as WEAK by InvestingPro, which offers 11 additional key insights about the company’s performance and prospects, investors should carefully monitor this strategic pivot.
In other recent news, VivoPower International PLC has announced several key developments. The company has completed a private capital raise of approximately $121 million, which will be directed towards purchasing and holding XRP digital assets as part of its treasury strategy. VivoPower has also formed a strategic partnership with BitGo, utilizing its trading desk and custody platform for the acquisition and secure storage of $100 million worth of XRP tokens. Additionally, VivoPower is considering a revised $200 million bid from Energi Holdings Limited for a 51% stake in its subsidiary, Tembo e-LV B.V., reflecting an increased enterprise value from a previous offer.
Further, VivoPower has set June 12, 2025, as the ex-dividend date for potential special dividend distributions related to Tembo. Shareholders on record by the close of business on June 13, 2025, will be eligible for these distributions. The company has also filed a registration statement with the U.S. Securities and Exchange Commission for a public offering of its ordinary shares. These strategic moves are part of VivoPower’s broader shift towards a digital asset enterprise with a focus on supporting decentralized finance infrastructure. The company emphasizes that there is no guarantee of any special dividend distributions being made.
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