CMC News

#VivoPower Shares Surge 32% on $100 Million #Ripple Labs Investment Plan

Nasdaq-listed VivoPower International shares jumped 32.12% to $5.10 after announcing plans to purchase $100 million in Ripple Labs equity.

The solar power company becomes the first publicly traded U.S. firm offering investors exposure to both Ripple shares and $XRP tokens.

CEO Kevin Chin says the combined strategy will optimize yield maximization while minimizing the weighted average cost of $XRP acquired.

The plan follows two months of due diligence and requires approval from #Ripple's executive management team.

VivoPower will continue acquiring $XRP tokens directly while purchasing Ripple shares from existing shareholders.

Management estimates the approach could lower average #XRP acquisition costs to an implied $0.47, representing an 86% discount to market prices.

Every $10 million in #Ripple shares could add an estimated $5.15 per share value for VivoPower shareholders.

VivoPower will partner with BitGo for custody and Nasdaq Private Market for Ripple share transactions.

An independent auditor will review the company's Ripple holdings quarterly to ensure transparency.

Shares gained another 4.51% in after-hours trading as investors responded positively to the crypto treasury strategy.