VivoPower International has announced a significant expansion of its mining operations through its subsidiary, Caret Digital, which will now include the exchange of mined tokens for XRP. This strategic move is expected to provide the company with an opportunity to enter the XRP market at an effective discount of approximately 65%.
Currently, Caret Digital mines a variety of cryptocurrencies, including Bitcoin, Litecoin, and Dogecoin. However, the company has not disclosed the specific tokens that will be swapped for XRP or the volume of these conversions. As of now, XRP is trading at around $3, with a substantial market capitalization of approximately $182 billion.
VivoPower articulated that a primary objective of this new strategy is to secure exposure to XRP at the lowest average cost through a combination of mined token exchanges and investments in Ripple Labs’ equity. This dual approach represents a sophisticated model of treasury management aimed at optimizing asset acquisition within the altcoin market.
The initiative to pivot towards XRP began in May, marked by a $121 million private placement involving His Royal Highness Prince Abdulaziz bin Turki bin Talal Al Saud, coupled with the addition of former Ripple board member Adam Traidman as advisory chairman.
In June, VivoPower sealed a partnership with BitGo, designating it as the exclusive custodian and trading partner for its XRP acquisitions. This came alongside the announcement of a $100 million yield initiative involving Flare, the blockchain network supported by Ripple Labs, underlining VivoPower’s commitment to generating returns on its treasury reserves.
In August, VivoPower disclosed “definitive agreements” to acquire $100 million worth of Ripple Labs equity from existing shareholders, pending final approvals. This transaction would equate to approximately 211 million XRP at a price of $0.47 per token, representing an 86% discount relative to the market price at that time. Such strategies highlight VivoPower’s aim to integrate discounted asset exposure with institutional-grade custody and yield solutions.
In a further extension of its XRP strategy, VivoPower’s electric vehicle subsidiary, Tembo, will begin accepting Ripple’s RLUSD stablecoins as a payment method. This integration is poised to streamline transactions and eliminate bank-related charges, enhancing VivoPower’s enterprise-grade cryptocurrency capabilities.
Moreover, VivoPower is embarking on a $30 million pilot program with Doppler Finance, which involves deploying XRP into structured yield pools. Should this initiative prove successful, it has the potential to expand up to $200 million in scope. Concurrently, the partnership with Flare has intensified, with VivoPower deploying $100 million worth of XRP onto their blockchain to generate yield through decentralized finance applications. These strategic moves position the treasury to function as a yield-generating entity, shifting away from a passive holding approach.
Market activity related to XRP has surged following VivoPower’s announcements, with open interest in XRP derivatives rising from $7.7 billion in August to $8.45 billion recently. Speculative interest is clearly on the rise, reflecting robust trader confidence after earlier liquidations had driven prices down by 30%. Analysts are closely monitoring technical indicators, noting that $3.05 appears to be a crucial support level. There is optimism that XRP could potentially break out of the $3.50-$4.00 range if this level holds; however, a drop below $3.05 could lead to a reassessment of support around $2.80.
In summary, VivoPower’s multifaceted approach toward XRP acquisition and integration signals a strategic evolution in how the company is positioning itself within the cryptocurrency landscape, transitioning from traditional asset management to innovative yield generation and payment solutions.
