VivoPower International has unveiled plans to acquire up to $300 million in shares from Ripple Labs, targeting this equity acquisition for Lean Ventures, a South Korean investment firm. Through a dedicated investment vehicle, VivoPower aims to provide its investors with indirect exposure to approximately 450 million XRP, which currently holds a market value of nearly $900 million.
The initiative is being spearheaded by VivoPower’s digital asset division, named Vivo Federation, which will facilitate the sourcing of Ripple equity specifically for Lean Ventures. Notably, this strategy allows VivoPower to avoid significant capital outlay from its balance sheet. Instead, the company anticipates generating revenue through management fees and performance-based compensation tied to the assets overseen, aiming for net economic returns of about $75 million over a three-year horizon.
This step follows VivoPower’s earlier announcement in August about plans to potentially acquire up to $100 million in Ripple shares, forming part of its broader XRP-focused treasury strategy. VivoPower’s approach is characterized by positioning equity ownership as a means of obtaining indirect exposure to XRP rather than holding the cryptocurrency directly.
The success of this investment hinges on Ripple’s corporate performance, the composition of its balance sheet, and overall market trends, since the provided structure involves equity stakes rather than direct holdings of the digital asset. VivoPower describes the shareholdings as a reflection of the underlying XRP values, grounded in Ripple’s existing token reserves, despite operating through private company equity.
On the trading front, VVPR stock closed at $2.83, marking an 11.56% decline from the previous session and taking place within a notably low trading volume of around 340,600 shares. This drop follows the announcement of the transaction and appears to stem from relatively reduced investor participation.
The investment arrangement is particularly geared towards South Korean investors looking for indirect cryptocurrency exposure through more traditional financial instruments, especially amid a resurgence of institutional interest in XRP. Recent developments, including the resolution of Ripple’s regulatory challenges in the U.S. and favorable decisions regarding spot XRP exchange-traded funds, have alleviated some of the legal uncertainties surrounding the asset.
However, shares in Ripple Labs are typically traded on private secondary markets, often at discounts compared to the value of the company’s XRP holdings, attributed to lower liquidity in these markets relative to publicly listed stocks. Pricing is influenced by bespoke agreements rather than continuous market trading, as noted by Adam Traidman, a member of VivoPower’s advisory board.
VivoPower has also advised that this transaction remains contingent upon ongoing negotiations, market conditions, and the availability of shares from Ripple Labs. The company is focused on pursuing private equity exposure to benefit from potential token appreciation while adhering to a conventional investment framework.
