- VivoPower secures XRP at $0.47, leveraging an 84% discount.
- Ripple share acquisition offers VivoPower significant long-term digital asset gains.
- VivoPower positions itself with strategic XRP accumulation at massive discount.
VivoPower has made headlines with its acquisition of Ripple shares, securing XRP tokens at an impressive 84% discount. According to Crypto Eri, VIVOPOWER has been buying exposure to XRP at this substantial discount by purchasing Ripple shares.
This strategic move gives the company an advantageous entry point into Ripple’s digital assets, including XRP, which is valued significantly lower than the current market price of the cryptocurrency at $2.4.
Here’s how it works: Ripple holds 41 billion XRP tokens, currently valued at $135 billion based on market prices. However, VivoPower is acquiring shares in Ripple at a much lower valuation, approximately $19 billion, representing an 86% discount to the current market valuation of Ripple’s XRP holdings.
According to Paul Barron, this valuation arbitrage allows VivoPower to secure XRP tokens at a fraction of the market price, offering the company a unique advantage in the crypto space.
Also Read: Analyst Contrasts XRP Neutral Liquidity Model With USDC and Other Stablecoins
Breaking Down the Numbers: An 86% Discount
The key to this deal lies in the difference between Ripple’s overall market value and the price at which VivoPower is purchasing shares. At Ripple’s current market valuation of $135 billion, VivoPower is buying Ripple shares at a valuation of just $19 billion.
This price discrepancy means that for every dollar VivoPower spends on Ripple shares, they are effectively acquiring XRP at just $0.47 per token, compared to the market price of around $2.49 per XRP.
This discount is significant, offering VivoPower a unique opportunity to add XRP to its digital asset treasury at a heavily discounted rate. Not only does this provide exposure to XRP, but VivoPower also gains a stake in Ripple’s growing suite of business units, including its stablecoin RLUSD, the Hidden Road prime brokerage, and custodial services through MetaCo and Standard Custody & Trust Company.
A Strategic Acquisition with Long-Term Goals
VivoPower’s acquisition of Ripple shares is a calculated move to enhance its digital asset portfolio. By securing XRP at such a low price, VivoPower is positioning itself for substantial future growth.
According to Paul Barron, the company’s strategy involves both acquiring Ripple shares and XRP tokens directly, allowing for a diversified approach that maximizes potential returns while minimizing the cost per XRP.
Kevin Chin, CEO of VivoPower, emphasized that this acquisition aligns with the company’s long-term goal of building a sustainable and profitable digital asset portfolio. The deal allows VivoPower to optimize yield and create significant value for its shareholders by lowering the weighted average cost of its XRP holdings.
VivoPower’s Unique Position in the Crypto Market
With this acquisition, VivoPower becomes the first publicly listed company in the United States to provide direct exposure to both Ripple shares and XRP tokens. The move also highlights VivoPower’s commitment to transparency, with an independent auditor set to review its Ripple shareholdings quarterly.
As Ripple continues to expand its business, including its stablecoin ventures and other digital asset services, VivoPower stands to benefit from the growing value of Ripple’s diversified portfolio.
With the current market dynamics and VivoPower’s strategic acquisition approach, the company is well-positioned to capitalize on the ongoing growth of the crypto sector.
Also Read: XRP Floodgates Are About to Open, Here’s What’s Coming
