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VivoPower Eyes $300M Ripple Labs Share Deal

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VivoPower Eyes $300M Ripple Labs Share Deal

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The Nasdaq-listed firm VivoPower (VVPR) is expanding its digital asset treasury strategy linked to Ripple’s XRP token through a joint venture aimed at acquiring hundreds of millions of dollars worth of the crypto.

The company said its digital asset unit, Vivo Federation, has been engaged with Lean Ventures, an asset management firm based in South Korea, to source $300 million of Ripple Labs equity. 

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At current XRP prices, the company estimates that the stake would represent approximately 450 million tokens, valued at around $900 million. 

VivoPower Won’t Buy XRP Outright

The deal won’t see VivoPower purchase XRP tokens outright. Instead, Lean Ventures is looking to establish an investment vehicle that is dedicated to holding shares in Ripple Labs that are sourced by Vivo Federation. 

Through the move, the companies will target both institutional and qualified retail investors in South Korea, which is one of XRP’s largest markets globally, and give them indirect exposure to the token.

VivoPower has shared that it has received approval from Ripple Labs to purchase an initial tranche of the company’s preferred shares. It added that it is also in the process of negotiating more purchases from the company’s existing institutional shareholders. 

Additional details about the transactions have not been disclosed due to legal reasons. 

VivoPower Was One Of The First XRP Treasury Companies

VivoPower’s arrangement with Lean Ventures builds on the prior’s recent pivot to an XRP-centric treasury firm. 

Earlier this year, the company raised $121 million in a private placement that was led by Saudi investor Abdulaziz bin Turki Abdulaziz Al Saud. This positioned VivoPower as one of the first publicly-traded firms to establish a treasury strategy around XRP as opposed to crypto market leaders Bitcoin (BTC) and Ethereum (ETH).

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VivoPower has since deployed its XRP into yield-generating strategies. This includes a $100 million allocation via Flare’s FAssets system. The company has also adopted Ripple’s RLUSD stablecoin for its treasury operations. 

VivoPower share priceVivoPower share price

VivoPower share price (Source: Google Finance)

VivoPower’s establishment of an XRP treasury came amid a share price struggle for the company. Data from Google Finance shows that the company’s stock price has plummeted over 44% in the past six months. 

The stock saw a rebound in the past month and week, rebounding over 9% and 8%, respectively. But the past day saw it plunge over 11%.

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VivoPower Move Fails To Ignite XRP Rally

Despite VivoPower doubling down on XRP, the crypto’s price has continued to languish.

In the past week, the token’s value has fallen over 7%, according to CoinMarketCap. This was after a more than 3% drop in the past 24 hours to bring the altcoin’s price down to $1.84 as of 4:36 a.m. EST. 

COINBASE:XRPUSD Chart Image by StevenWalgenbachCOINBASE:XRPUSD Chart Image by StevenWalgenbach

Daily chart for XRP/USD (Source: TradingView)

From a technical perspective, XRP has recently lost the support level at $1.8520. What’s more, indicators such as the Moving Average Convergence Divergence (MACD) and the Relative Strength Index (RSI) warn bears might push XRP’s price down to $1.5815 in the short term.

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The MACD line is breaking away below the MACD Signal line, which is a classic indication of strengthening seller momentum. Meanwhile, the RSI line is plummeting below its Simple Moving Average (SMA) line. Traders might interpret this as a sign that sellers are starting to overpower buyers. 

A daily close today above the $1.8520 support might invalidate the bearish thesis. In this alternative, more bullish scenario, XRP could end up rebounding and rising to as high as $2.2220.

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