Worksport (Nasdaq: WKSP), a publicly traded company that manufactures tonneau covers, has made an unorthodox move to add crypto to its corporate treasury.
Apart from Bitcoin, the company also decided to adopt the Ripple-affiliated XRP cryptocurrency.
According to a recent resolution adopted by the company's board, Worksport will be able to buy up to $5 million in the two aforementioned cryptocurrencies.
It will be funding its purchases with a portion of excess operational cash and future capital to be raised.
Apart from adding crypto to its corporate treasury strategy, the company has also announced that it will start accepting cryptocurrency payments on its website.
Over the last month, XRP has managed to make plenty of headlines, with its stunning rally that ended up being one of the top crypto stories of the year.
Meanwhile, the price of Bitcoin surpassed the $100,000 mark for the first time earlier today.
Bitcoin has already appeared on the balance sheets of roughly 60 companies, with business intelligence firm MicroStrastegy being the cryptocurrency's largest holder by a large margin. Michael Saylor's firm has rejected the idea of touching alternative cryptocurrencies, sticking to the "there is no second best" mantra.
It is extremely rare for companies to opt for relatively arcane altcoins such as XRP.
Worksport CEO Steven Rossi described Bitcoin and XRP as "increasingly reliable stores of value" due to their "inflation-resistant" properties.
Apart from the price rally, the fact that there are multiple pending spot XRP ETF filings in the U.S. might also make the fourth-largest altcoin more appealing for corporate adoption.
Dan Burgin
Vladislav Sopov