VivoPower International PLC announced today that it will acquire a stake in Ripple Labs as part of its XRP-focused digital asset money management strategy. Following two months of due diligence, VivoPower has plans to purchase $100 million worth of privately held shares in Ripple. This includes a definitive agreement directly with Ripple’s existing shareholders and is subject to final approval by Ripple’s executive management. In addition to these transactions, VivoPower will continue to acquire and hold XRP tokens directly. Ripple minted a fixed number of 100 billion XRP tokens at its inception, and the network is currently in a state of mild deflation given the destruction of approximately 14 million XRP tokens to date.Ripple continues to hold 41 billion XRP tokens, primarily in escrow. In addition, Ripple owns a number of operating businesses, including its stablecoin RLUSD, digital asset prime brokers HiddenRoad, MetaCo, and StandardCustodyandTrustCompany, as well as the recently acquired stablecoin payment platform company Rail. On a weighted average basis, this strategy is designed to make the cost per share of the XRP token is acquired at a cost well below the market price of XRP. For each $10 million of Ripple tokens acquired, VivoPower shareholders are expected to receive $5.15 per share of accretion (this accretion is based on factors such as VVPR, the current market price of XRP, and the weighted average acquisition price of Ripple, all of which are subject to volatility and change).
