VivoPower to procure underlying 211M XRP position worth $696M

VivoPower (VVPR) International is acquiring Ripple Labs shares, as part of a strategic enhancement to its XRP-focused digital asset treasury strategy. Following a two-month period of due diligence, VivoPower has budgeted to purchase an initial $100 million of privately held Ripple shares. This encompasses definitive agreements directly with current Ripple shareholders, which are subject to final approval from Ripple’s executive management. Aside from these transactions, VivoPower will continue to directly acquire and hold XRP tokens. Based on current market prices, a purchase of $100 million of Ripple shares translates into an underlying 211 million XRP token exposure with a current market value of $696 million. Ripple minted a fixed 100 billion XRP tokens at inception and given there have been approximately 14 million XRP tokens burnt to date, the network is mildly deflationary. Ripple continues to hold 41 billion XRP tokens, primarily in escrow. In addition, Ripple has a number of operating businesses, including RLUSD, its stablecoin; the digital assets prime broker Hidden Road, MetaCo and the Standard Custody and Trust Company, as well as the recently acquired stablecoin payment platform company, Rail. VivoPower will become the first and only publicly listed company in the United States that provides shareholders with exposure to Ripple shares as well as XRP tokens. On a weighted average basis, this dual-pronged strategy is intended to deliver an acquisition cost per XRP token that represents an exceptionally favorable discount to the market price of XRP. For $10 million of Ripple shares acquired, an estimated $5.15 per share of value accretion could accrue to VivoPower shareholders. Importantly, VivoPower will have a full and direct legal title of Ripple shares purchased and be recorded as a shareholder directly on Ripple’s cap table. VivoPower will not purchase any Ripple shares that are held in special-purpose vehicle structures. An independent auditor will conduct quarterly reviews of VivoPower’s Ripple shareholdings.