VivoPower To Purchase Initial US$100 Million of Ripple Shares, Effectively Buying XRP at an Implied US$0.47 Per Token

Core Insights - VivoPower International PLC is acquiring shares of Ripple Labs, aiming to enhance its XRP-focused digital asset treasury strategy [1][3] - This acquisition positions VivoPower as the first and only U.S.-listed company providing exposure to Ripple shares and XRP tokens [1][3] - The company plans to purchase an initial US$100 million of privately held Ripple shares, subject to final approval from Ripple's management [1][4] Acquisition Details - VivoPower's acquisition strategy is expected to yield an estimated US$5.15 of value per share for every US$10 million of Ripple shares acquired [1][3] - The acquisition is based on a weighted average valuation of approximately US$19 billion for Ripple, representing an 86% discount to Ripple's US$135 billion holding of XRP tokens [6] - This implies an effective purchase price of US$0.47 per XRP token for VivoPower [6] Business Strategy - VivoPower aims to build a sustainable long-term treasury model that maximizes yield while minimizing the acquisition cost of XRP [5] - The company will hold a full and direct legal title of the Ripple shares purchased and will be recorded as a shareholder on Ripple's cap table [4] - VivoPower's strategy includes acquiring both Ripple shares and XRP tokens to optimize its portfolio [5] Ripple's Business Overview - Ripple holds 41 billion XRP tokens, primarily in escrow, and has a number of operating businesses including RLUSD, a stablecoin, and Hidden Road, a digital asset prime broker [2][6] - The company has recently expanded its stablecoin business and partnered with BNY Mellon [6] - Ripple's diverse business units also include digital asset custodians and a recently acquired stablecoin payment platform [2][6] Operational Support - VivoPower has engaged leading digital asset custodians and private market securities infrastructure providers to support its treasury strategy [7] - The company will undergo quarterly reviews of its Ripple shareholdings by an independent auditor [4] Company Background - VivoPower is transforming into an XRP-focused digital asset enterprise, aiming to contribute to the growth and utility of the XRP Ledger [8] - The company operates globally and has a focus on sustainable energy solutions, with business units in electric solutions and digital asset mining [9]