VivoPower to acquire Ripple Labs shares as part of XRP strategy

LONDON - VivoPower International PLC (NASDAQ:VVPR), a company with a market capitalization of $51.57 million and currently showing weak financial health according to InvestingPro metrics, announced Monday it plans to purchase an initial $100 million of privately held Ripple Labs shares as part of its XRP-focused digital asset treasury strategy.

The Nasdaq-listed company, which has seen its stock surge over 460% in the past six months despite concerning liquidity indicators, has completed two months of due diligence and reached definitive agreements with current Ripple shareholders, subject to final approval from Ripple’s executive management. InvestingPro analysis reveals the company’s current ratio of 0.3, suggesting potential challenges in meeting short-term obligations.

Based on current market prices, VivoPower’s planned $100 million investment would provide exposure to approximately 211 million XRP tokens with a market value of $696 million. This represents an implied acquisition cost of $0.47 per XRP token, compared to current market prices.

Ripple Labs currently holds 41 billion XRP tokens, representing about 41% of all XRP tokens in circulation. The company also operates several business units including RLUSD stablecoin, digital assets prime broker Hidden Road, and digital asset custodians Metaco and Standard Custody & Trust Company.

"The opportunity to acquire Ripple shares and materially average down the acquisition price per XRP is in line with our objective of building a sustainable long-term treasury model," said Kevin Chin, Executive Chairman and CEO of VivoPower.

To support its treasury strategy, VivoPower has engaged digital asset infrastructure providers including BitGo and Nasdaq Private Market, LLC.

VivoPower stated it would become the first and only U.S.-listed company providing shareholders with exposure to both Ripple shares and XRP tokens. The company will continue to directly acquire and hold XRP tokens alongside its Ripple share purchases.

The announcement comes as VivoPower undergoes a strategic transformation from a sustainable energy solutions company into what it describes as an XRP-focused digital asset enterprise.

This information is based on a press release statement from VivoPower International PLC. According to InvestingPro, the company maintains impressive gross profit margins of 74.68%, though it faces challenges with cash burn. InvestingPro subscribers have access to 14 additional key insights about VVPR’s financial position and growth prospects.

In other recent news, VivoPower International PLC has announced plans to purchase up to $100 million in shares of Ripple Labs as part of its digital asset strategy. This move is pending approval from Ripple’s executive management and aligns with VivoPower’s focus on XRP tokens. Additionally, Nasdaq Options Market will begin listing standardized options for VivoPower stock, expanding trading possibilities for investors. In a significant financial maneuver, VivoPower has reduced its liabilities by $7.5 million through issuing shares to lenders and suppliers, a strategy also adopted by company directors who opted to receive shares instead of certain fees. This debt reduction is part of a broader shareholder debt principal reduction plan initiated with AWN Holdings Limited, with VivoPower aiming to retire the $28.8 million AWN shareholder loan. These developments reflect VivoPower’s strategic financial adjustments and expansion into digital assets.

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