VivoPower shares jump after further $19 million raise to scale XRP treasury strategy
Quick Take VivoPower International closed an additional $19 million equity raise at $6.05 per share to support its XRP treasury strategy. VivoPower’s shares rose 14% on Wednesday following the news to close at $5.13.
Sustainability firm VivoPower International announced Wednesday it had raised a further $19 million to support its recently launched XRP treasury strategy.
The Nasdaq-listed small-cap said it successfully closed an equity raise with the issuance of additional common stock at $6.05 per share — a 34% premium to the prior day's market closing price of $4.50.
The new shares were placed with long-term U.S. and international institutional investors, signaling strong support for VivoPower's XRP digital asset treasury strategy, VivoPower said in a statement . The net proceeds will be used to expand the firm's digital asset treasury and retire debt, it added.
This latest raise is in addition to the previously announced $121 million private placement in May, led by His Royal Highness Prince Abdulaziz bin Turki bin Talal Al Saud, chairman of Eleventh Holding Company in Saudi Arabia. Adam Traidman, a former Ripple board member, also participated and joined VivoPower's advisory board as chairman.
VivoPower's shares closed up 14% at $5.13 on Wednesday following the news, reaching a market cap of around $52 million. VVPR is currently down 0.8% in pre-market trading on Thursday, according to TradingView .
VVPR/USD price chart. Image: TradingView .
Buying XRP at a 65% discount
In August, VivoPower announced additional plans to acquire $100 million of privately held Ripple Labs shares through "definitive" agreements with current shareholders, subject to final approval from Ripple's executive management. VivoPower said that the deal would give it exposure equivalent to 211 million XRP at an implied $0.47 per token — an 86% discount to market prices at the time.
Last month, VivoPower then announced that its mining arm, Caret Digital, will expand operations and swap all currently mined cryptocurrencies, including Bitcoin, Litecoin, and Dogecoin, into XRP — a move it claims will give it an effective 65% discount, based on how much cheaper it can acquire the original assets through mining than via the open market before swapping them.
The company is using BitGo as its exclusive custodian and over-the-counter trading partner to acquire XRP. It has also partnered with Layer 1 blockchain developer Flare, which is backed by Ripple Labs, to generate yield on its holdings. VivoPower said the yield program would begin with a $100 million capital allocation with plans to reinvest income directly into its XRP reserves.
VivoPower has also recently further broadened its involvement in the XRP ecosystem. Its EV arm, Tembo, began accepting Ripple's RLUSD stablecoin for payments. A partnership with Doppler Finance resulted in $30 million of XRP being deployed into institutional yield programs, with the returns being funneled back into reserves.
XRP is trading up 3.2% over the past day at $2.99, according to The Block's XRP price page .
Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.
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