VivoPower International announced it will acquire shares of Ripple Labs to bolster its XRP-focused digital asset treasury strategy. Following the news, the company's shares rose 10% in morning trading.
Following a nearly two-month due diligence process, VivoPower has allocated funding to acquire an initial $100 million in Ripple shares held in the private equity market. In addition to these investments, the company will continue to directly purchase and hold XRP tokens.
With this move, VivoPower will become the first and only publicly traded company in the United States to offer its shareholders direct access to both Ripple shares and XRP coins.
According to the company's statement, for every $10 million worth of Ripple shares purchased, VivoPower (VVPR) shareholders are expected to receive an increase in value of approximately $5.15 per share.
Ripple Labs, backed by investors like Andreessen Horowitz and Google Ventures, owns 41 billion XRP, equivalent to approximately 41% of all XRP coins in circulation.
*This is not investment advice.
