VivoPower, a Nasdaq-listed photo voltaic firm, mentioned it plans to spend $100 million to purchase privately held shares of Ripple, in keeping with firm statements.
Based on the corporate’s presentation of the numbers, that fairness publicity could be the equal of about 211 million XRP, which VivoPower values at roughly $696 million.
Details Of The Purchase
According to VivoPower, the corporate intends to finish the acquisition after two months of due diligence and topic to Ripple board approval.
The firm says the $100 million fairness stake would offer an “underlying publicity” equal to about 211 million XRP, implying a median acquisition value of about $0.47 per XRP.
VivoPower additionally referenced a previous hypothetical involving 30 million XRP at $3.29. The firm named custodial and transaction companions, together with BitGo and Nasdaq Private Market, to deal with custody and the share switch course of.
How The Discount Is Calculated
Based on reviews, VivoPower’s announcement frames Ripple’s 41 billion XRP holding as the first supply of worth when calculating an implied 86% low cost towards the token’s market worth.
That computation treats the XRP stash because the dominant asset and doesn’t assign materials worth to Ripple’s working items akin to RLUSD, Hidden Road, Rail, and Metaco.
VivoPower estimated it could require about $19 billion to amass all 41 billion XRP on the similar phrases, and it referenced a previous valuation of about $135 billion for that holding at an earlier date.
XRP market cap presently at $185 billion. Chart: TradingView
Market Reaction And Peer Moves
Reports point out the assertion drew investor consideration and broader market dialogue. Other companies have introduced XRP-focused treasury plans in current weeks, together with Trident Digital Tech, which plans to boost $500 million, and China’s Webus, which filed plans to boost $300 million.
Wellgistics Health and Hyperscale Data have been additionally named in reviews as corporations allocating treasury funds to XRP.
Image: Bitpanda Blog
The proposed transaction is for personal Ripple shares and doesn’t, on face worth, switch XRP tokens into VivoPower’s custody.
Based on the corporate’s description, the place would signify fairness publicity that’s mapped to an underlying token equal, somewhat than a right away token supply.
The transaction stays topic to Ripple administration approval and customary closing situations, and it could embody switch restrictions, lock-ups, or different authorized phrases.
VivoPower acknowledged that, underneath the framing utilized in its launch, each $10 million of Ripple shares acquired would correspond to $5.15 of per-share progress for VivoPower shareholders; that metric is dependent upon deal phrases and subsequent valuations.
Reports advocate monitoring VivoPower’s SEC and Nasdaq disclosures, and ready for Ripple’s response and any definitive transaction paperwork to verify last mechanics and accounting remedy.
Featured picture from VivoPower Facebook, chart from TradingView
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