VivoPower International PLC (NASDAQ: VVPR) has secured $121 million in funding through the sale of 20 million common shares. Information released by the company indicates that a substantial portion of this investment came from His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud. Other notable investors include Adam Traidman, formerly of Ripple’s board and CEO of SBI Ripple Asia.
The capital raised is earmarked for the purchase of XRP, a move that would position VivoPower as the first publicly traded entity to adopt the cryptocurrency for treasury management purposes. This decision is reportedly fueled by a recent statement from the U.S. Securities and Exchange Commission (SEC) identifying XRP as a vital asset supporting the United States’ planned strategic Bitcoin reserve initiative.
Market analysts believe XRP is poised for significant growth, particularly as the Ripple vs. SEC legal case nears its conclusion. Beyond direct XRP investment, the newly established fund will also provide backing for Decentralized Finance (DeFi) projects operating on the XRPL ledger.
“We have been investors in the digital asset sector for a decade and have been long-term holders of XRP. After reviewing a number of listed vehicles seeking to embrace a digital asset treasury model, we selected VivoPower given its strategic focus on XRP and its objective to contribute to building out of the XRPL ecosystem,” Prince Abdulaziz noted.
Potential Impact on the XRP Market
VivoPower’s planned XRP treasury fund is anticipated to have a notable impact on the broader altcoin market structure. Furthermore, recent regulatory clarification concerning cryptocurrency within the U.S. has led to a surge in institutional demand for XRP.
Reports indicate that several investment firms are seeking approval for spot XRP Exchange Traded Funds (ETFs) in the U.S., with expectations of potential approval later this year. From a technical trading perspective, the announcement did not immediately trigger a price surge for XRP, as the overall effects are expected to be long-lasting. The large-cap altcoin, possessing a total diluted value of approximately $225 billion and an average 24-hour trading volume nearing $2 billion, experienced a roughly 3% decrease, trading around $2.26 on Wednesday during the late North American trading hours.
Stay Informed About Crypto!
Get the latest breaking news, in-depth analysis, and up-to-the-minute reports on Bitcoin, altcoins, DeFi, NFTs, and other emerging trends.