XRP push at VivoPower leans on 65% discount via Ripple shares and mining swaps

• VivoPower is combining token swaps from mining with a $100 million deal to acquire privately held Ripple Labs shares, equivalent to roughly 211 million XRP.
• The company has partnered with Flare and Doppler Finance to generate yield on XRP holdings.

Nasdaq-listed VivoPower International (NASDAQ: VVPR) announced on September 16 that its mining subsidiary, Caret Digital, will expand operations and convert mined tokens into XRP.

The company said the move would provide exposure to XRP at an “effective 65% discount.” However, it hasn’t disclosed how much XRP it intends to acquire or which tokens will be exchanged.

VivoPower Expands Mining Arm, Plans to Convert Tokens Into XRP

In an official announcement, VivoPower International said that it will scale up its proof-of-work mining subsidiary, Caret Digital, after securing bulk discounts on new mining rigs. The company said that all mined assets will be converted directly into XRP, aligning with its strategy to accumulate the token at a favorable cost basis.

XRP continues to trade above $3.0, up 1.7% over the past 24 hours, with a market capitalization of about $182 billion.

VivoPower first outlined its XRP treasury strategy in May, supported by a $121 million private placement led by Prince Abdulaziz bin Turki bin Talal Al Saud, chairman of Eleventh Holding Company in Saudi Arabia. Former Ripple board member Adam Traidman also invested and joined VivoPower’s advisory board as chairman.

In June, the firm said it would use BitGo as its exclusive custodian and OTC trading partner for XRP acquisitions. Around the same time, it partnered with Flare, a Layer 1 blockchain backed by Ripple Labs, to generate yield on its holdings.

VivoPower stated that the program would start with a $100 million capital allocation, with income reinvested directly into its XRP reserves, as mentioned in our previous story.

Signing Ripple Equity Deal and Expanding XRP Strategy

Last month, VivoPower said that it signed “definitive” agreements to acquire $100 million worth of privately held Ripple Labs shares from existing shareholders, pending approval from Ripple’s executive management. The company said the deal would provide exposure equivalent to roughly 211 million XRP at an implied valuation.

In addition to this, the Nasdaq-listed firm outlined a dual-pronged treasury strategy that combines swapping mined tokens into XRP with acquiring Ripple equity. The goal behind this is to lower its average acquisition cost while deepening exposure to the XRP ecosystem.

Moreover, VivoPower has also extended its activities within the ecosystem in recent weeks. Its electric vehicle unit, Tembo, will accept Ripple’s RLUSD stablecoin for payments, while the company partnered with Doppler Finance to allocate $30 million of XRP into institutional yield programs, as mentioned in our previous story.

The XRP price has been holding firm above $3.0 as of now, as overall crypto market volatility curbs ahead of the Fed rate cuts this week.