Publicly listed company VivoPower has announced that it is buying $100 million worth of privately held shares of enterprise blockchain company Ripple.
By owning Ripple shares, the company claims that it will get indirect exposure to the company's massive XRP stash.
Following the acquisition of Ripple shares, VivoPower will be the only U.S.-listed company that can provide exposure to both Ripple shares and XRP.
The shares of VivoPower are up by more than 9% following the latest announcement. They have surged by a whopping 40% over the past five days alone.
86% discount
Its $100 million Ripple stake would correspond to roughly 211 million XRP tokens (about $696 million at current prices if they were to be sold on the open market).
VivoPower will be able to buy Ripple shares at a valuation of approximately $19 billion. The company is getting exposure to XRP tokens at just $0.47 per token.
The company claims that the aforementioned valuation represents an 86% discount compared to the company's vast XRP holdings, which currently stand at about $135 billion.
Extra perks
Apart from its enormous XRP stash, Ripple also owns several other businesses, including prime brokerage Hidden Road and digital custodian Metaco.
As reported by U.Today, Ripple also recently agreed to buy Rail, a popular stablecoin infrastructure provider.
XRP's corporate momentum
In May, VivoPower announced that it had secured a total of 121 million to launch a reserve with the popular altcoin.
XRP's corporate treasury momentum has also been supported by such companies as Trident Digital Tech Holdings, Webus International Limited, Wellgistics Health and so on.
However, some analysts have voiced some concerns about the legitimacy of such offerings.
Dan Burgin
Vladislav Sopov
U.Today Editorial Team