XRP treasury companies are experiencing significant growth as various institutions aim to replicate Michael Saylor’s Bitcoin strategy. This shift toward corporate adoption comes despite the prediction market Kalshi indicating that the chances of XRP reaching $5 by 2025 are only at 20%, presenting a rather pessimistic outlook for the fifth-largest cryptocurrency by market cap.
The number of recognized XRP treasury companies has nearly reached a dozen, significantly boosted by rising interest from institutional players. Current data reveals that there are 11 established XRP treasury firms, and analysts anticipate this number will continue to grow in the coming months. Among these, Evernorth Holdings Inc., backed by Ripple, is expected to dominate with assets amounting to $1 billion. Following closely is Trident Digital, which holds $500 million in XRP assets.
In recent developments, Chinese firm Webus has initiated plans for a $300 million XRP strategic reserve, having filed the necessary documentation with the U.S. Securities and Exchange Commission (SEC) earlier this June. VivoPower is also expanding its XRP holdings after it initiated a reserve with a $121 million private placement in mid-2022.
Other notable players include Florida-based companies Wellgistics and Hyperscale, ranking fifth and sixth, respectively, in the growing list of XRP treasury companies. Moreover, Everything Blockchain (EBZT) and Japanese game developer Gumi have recently joined, further diversifying the ecosystem.
Worksport has made its entry with a multi-million dollar investment in both Bitcoin and XRP, while BC Bud has also added XRP to its portfolio through a private placement. These companies are increasingly adopting XRP for its settlement applications via RippleNet/On-Demand Liquidity (ODL), alongside exploring yield generation opportunities with Flare and other liquidity initiatives.
Adopting strategies reminiscent of Bitcoin, many of these companies aim to enhance value for shareholders based on potential market rallies. Executives from these firms cite improved regulatory clarity in the United States and growing adoption metrics as key factors motivating their participation in the XRP ecosystem.
However, despite these optimistic movements within the ecosystem, concerns linger regarding XRP’s price trajectory. Kalshi predicts a dimmer outlook, with only a 20% probability for XRP to touch the $5 mark in 2024, a sentiment echoed by ongoing downturns in the broader cryptocurrency market.
As of now, XRP is trading at $2.46, reflecting a nearly 17% drop over the past month. With a market capitalization of $147 billion, XRP currently ranks as the fifth-largest cryptocurrency, having recently been surpassed by BNB.
