VivoPower International, a Nasdaq-listed energy company, announced a strategic pivot that has garnered significant attention in both the financial and cryptocurrency spheres. On Wednesday, the company unveiled a $121 million private share placement aimed at establishing a digital asset treasury centered around XRP, the fourth largest cryptocurrency by market capitalization. This move is notably backed by Saudi Prince Abdulaziz bin Turki Abdulaziz Al Saud, who chairs the Eleventh Holding Company and has committed a substantial $100 million investment.
A Royal Backing and Strategic Shift
The infusion of capital will facilitate VivoPower’s ambitious transition from its legacy operations to a novel focus on digital assets, specifically XRP. The company intends to sell 20 million ordinary shares at $6.05 each, according to a filing with the Securities and Exchange Commission. Intriguingly, this marks a pioneering effort to create a publicly traded company with a treasury strategy centered around XRP, setting VivoPower apart from the growing trend of firms embracing digital currencies as part of their corporate treasuries. This follows a pattern of institutional adoption, which we detailed in our analysis of corporate treasury investments.
Adam Traidman, known for his previous role as an executive at SBI Ripple Asia, is set to join VivoPower as the chairman of the board of advisors. Ripple, closely tied to the XRP Ledger, provides blockchain services to enterprises. This strategic appointment underscores VivoPower’s intent to integrate deeply within the XRP ecosystem.
The Ripple Effect on Markets
The announcement had an immediate impact on VivoPower’s stock, which surged by as much as 26% before settling to a still-impressive 11% increase, trading around $6.75. This market reaction highlights investor confidence in the company’s new direction, as well as the allure of digital assets in today’s financial landscape.
The move by VivoPower is reminiscent of the strategy popularized by Michael Saylor’s MicroStrategy, which has become renowned for its sizeable Bitcoin holdings. However, VivoPower’s focus on XRP rather than Bitcoin or other popular digital assets like Ethereum’s ether or Solana’s SOL, which have been favored by recent market entrants like DeFi Development and SharpLink Gaming, signals a unique approach with its own set of risks and opportunities. This strategic shift echoes similar moves in the industry, such as Ripple’s recent offer for stablecoin issuer Circle, as reported in Ripple Offered $4B-$5B for Stablecoin Issuer Circle.
Historical Context and Future Implications
Founded in 2014, VivoPower has established itself in the energy sector but now seeks to carve out a niche in the burgeoning digital asset market. The decision to spin off its legacy business further emphasizes its commitment to this new path. “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,” remarked Prince bin Turki Abdulaziz Al Saud. His statement reflects both a long-term vision and a deep-seated interest in the potential of XRP, having been an investor in digital assets for over a decade.
Here’s where it gets interesting: VivoPower’s foray into the cryptocurrency space raises questions about the sustainability of such strategies and the volatility inherent in digital assets. While the potential for high returns exists, so too does the risk of market fluctuations impacting the value of their holdings. Analysts are keeping a close eye on how VivoPower’s strategy will play out in the coming months, particularly as regulatory landscapes around digital assets continue to evolve.
As we move further into 2025, VivoPower’s initiative could set a precedent for how publicly traded companies approach digital asset treasuries. Whether this trend will gain momentum or face hurdles remains to be seen. One thing is clear: the intersection of traditional finance and digital currencies is becoming increasingly intertwined, with companies like VivoPower leading the charge into uncharted territory.
Source
This article is based on: VivoPower Raises $121M to Launch XRP Treasury Strategy With Saudi Royal Backing
Further Reading
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Steve Gregory is a lawyer in the United States who specializes in licensing for cryptocurrency companies and products. Steve began his career as an attorney in 2015 but made the switch to working in cryptocurrency full time shortly after joining the original team at Gemini Trust Company, an early cryptocurrency exchange based in New York City. Steve then joined CEX.io and was able to launch their regulated US-based cryptocurrency. Steve then went on to become the CEO at currency.com when he ran for four years and was able to lead currency.com to being fully acquired in 2025.
