NASDAQ-registered solar power company Vivopower International Plc announced plans to expand its XRP-focused digital asset financing strategy by purchasing privately held Ripple Labs stock worth $100 million, up 32.12% in stock at $5.10 on Friday.
The move following a two-month due diligence will result in Vivopower taking Ripple shares directly from existing shareholders, with approval pending from Ripple management, the company said in a press release Friday.
“Our portfolio construction strategy is to purchase a combination of Ripple Share and XRP tokens. This allows us to optimize for maximum yield while minimizing the weighted average cost of the acquired XRP.”
Vivopower will also continue to acquire XRP (XRP) tokens directly and become the first publicly available US company to provide investors exposure to both Ripple Equity and XRP.
Vivopower shares subsequently won an additional 4.51% in after-hours trading. Source: Google Finace
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Vivopower taps Nasdaq for Ripple share Custody
To manage your strategy, Vivopower will work with preferred partners in private share transactions from BITGO and NASDAQ Private Market for custody. Independent auditors review Ripple Holdings Quarterly.
Ripple, which created 100 billion XRP with Inception, has burned around 14 million tokens so far, and has held 41 billion mainly in escrow. Beyond XRP, the company operates RLUSD Stablecoin, Digital Asset Prime Broker Hidden Road, Custodians Metaco, Standard Custody & Trust, and Stablecoin Payment Platform Rail.
Vivopower management claims that the total strategy will reduce the average acquisition cost per XRP of $0.47, an implied discount of 86% on the current market price.
According to the company, for each $10 million Ripple shares purchased, Vivopower shareholder value could add $5.15 per share, but this depends on the volatility of the market.
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BDACS launches institutional XRP custody in Korea
On Tuesday, South Korea’s cryptocurrency administrator BDACS launched XRP’s regulatory custody service following its February partnership with Ripple. The move leverages Ripple Custody, a corporate-grade solution, to provide agencies with XRP secure storage and management capabilities.
Earlier this year, Ripple Labs partnered with South Korean Crypto Custodian BDACS to provide institutional custody support for XRP and its US dollar-backed Stablecoin, RLUSD.
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