Nasdaq-listed VivoPower has achieved a major milestone by becoming the first public company to create an XRP-focused Treasury. To kickstart this initiative, the company has already raised up to $121 million, which it will use to acquire the altcoin.
VivoPower To Launch XRP Treasury
In a press release, VivoPower announced an XRP-focused digital asset Treasury Strategy, which will encompass the contribution to building out the XRPL ecosystem for real-world decentralized finance blockchain solutions.
The company made this announcement while noting that the altcoin could be one of the five digital assets that the US government will accumulate as part of the Strategic Bitcoin Reserve and Digital Asset Stockpile that Donald Trump announced months ago.
As part of the move to create this treasury, VivoPower revealed that it has raised $121 million through a private placement, with investors buying an aggregate of 20 million ordinary shares at $6.05 per share.
The company stated that His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud, Chairman of Eleventh Holding Company in Saudi Arabia, spearheaded the private offering. Meanwhile, a number of other crypto investors also participated in this fundraising.
This move to launch the XRP treasury comes just as companies continue to explore altcoins as a reserve asset. As CoinGape reported, Sharplink Gaming raised $425 million to buy Ethereum. Sol Strategies also filed a $1 billion shelf prospectus for future Solana investments.
Commenting on this move, His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud, said,
We have been investors in the digital asset sector for a decade and have been long-term holders of XRP. After reviewing a number of listed vehicles seeking to embrace a digital asset treasury model, we selected VivoPower given its strategic focus on XRP and its objective to contribute to building out of the XRPL ecosystem.
Plans For The Fund
VivoPower stated that it intends to use the majority of the funds from the private offering to accumulate XRP and establish its treasury operations. Some of the funds will also be used to contribute to and invest in the XRPL DeFi ecosystem.
However, the closing of the private offering is still subject to the satisfaction of certain conditions. One is the approval from VivoPower’s shareholders at a meeting which will hold on or around June 18.
As part of this strategic move, Adam Traidman, a former Ripple board member and crypto founder, will invest in the offering and join VivoPower’s Board of Advisors as its Chairman.
The XRP price is down amid this news, trading at around $2.25. The altcoin is down over 3% in the last 24 hours, as part of a broader crypto market correction, led by Bitcoin.
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Boluwatife Adeyemi
Boluwatife Adeyemi is a well-experienced crypto news writer and editor who has covered topics that cut across several topics and niches. Boluwatife has a knack for simplifying the most technical concepts and making it easy for crypto newbies to understand. Away from writing, He is an avid basketball lover, a traveler and a part-time degen.
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