VivoPower International has announced the expansion of mining operations through its subsidiary, Caret Digital, which will now engage in exchanging mined tokens for XRP. This strategic move is aimed at allowing the company to gain exposure to XRP at what they describe as an effective discount of approximately 65%.
Currently, Caret Digital is involved in mining various cryptocurrencies, including Bitcoin, Litecoin, and Dogecoin. However, the specific tokens to be traded or the extent of the conversion for XRP have not yet been disclosed. As it stands, XRP is valued close to $3, boasting a market capitalization of roughly $182 billion.
The company’s strategy highlights its objective to secure XRP exposure at the lowest possible average cost. This will be achieved not only through swapping tokens acquired from mining but also by investing in shares of Ripple Labs. VivoPower’s broader plan aims to mitigate acquisition costs by combining token purchases with equity deals related to Ripple Labs, showcasing a sophisticated treasury management model within the altcoin market.
The pivot towards XRP is a development that began in May, marked by a $121 million private placement backed by His Royal Highness Prince Abdulaziz bin Turki bin Talal Al Saud. Notably, former Ripple board member Adam Traidman has also taken on the role of advisory chairman.
A key partnership was established in June when VivoPower aligned with BitGo to act as its exclusive custodian and trading partner for XRP acquisitions. Around the same period, the company launched a $100 million yield initiative with Flare, the blockchain network associated with Ripple Labs, demonstrating a clear intent to generate returns on its treasury reserves.
In August, VivoPower disclosed the signing of “definitive agreements” for the acquisition of $100 million worth of Ripple Labs equity from current shareholders, pending final approval. This arrangement could result in VivoPower obtaining 211 million XRP at a rate of $0.47 per token, which represents an 86% discount based on the prevailing market conditions at the time. These strategic decisions illustrate a systematic approach to obtaining discounted asset exposure, coupled with institutional-grade custody and yield generation solutions.
Beyond balance sheet management, VivoPower’s strategy around XRP has evolved to encompass payments and yield generation. Its electric vehicle subsidiary, Tembo, is now set to accept Ripple’s RLUSD stablecoins for transactions, a move that aims to reduce transaction friction and bank fees while enhancing the company’s crypto capabilities.
Additionally, VivoPower has initiated a $30 million pilot project with Doppler Finance, targeting the deployment of XRP into structured yield pools, which could see an expansion to $200 million. Concurrently, its alliance with Flare has matured, facilitating the deployment of $100 million worth of XRP onto the chain for yield generation via decentralized finance applications. Such integrations pivot the company’s treasury into a yield-generating platform rather than merely serving as a reservoir for holding.
Market activity surrounding XRP has seen a notable uptick following VivoPower’s announcements. Recent data indicates that open interest in XRP derivatives has surged to $8.45 billion, rising from $7.7 billion in August, a period marked by substantial liquidations that resulted in a 30% drop. This resurgence reflects a growth in speculative activity and revitalized trader confidence.
Technical analysis suggests that $3.05 may serve as a critical support level for XRP. If this level is maintained, analysts believe that XRP has the potential to break free from the current $3.50-$4.00 range. Conversely, a fall below $3.05 could set the stage for a retest of $2.80.
