In a latest development, Worksport, a Nasdaq-listed manufacturer of covers for pickup trucks, has announced a strategic move into cryptocurrency, as it plans to adopt Bitcoin (BTC) and XRP (Ripple) for its corporate treasury. The move is aimed at diversifying its treasury strategy and enhancing overall financial stability.
The company’s Board of Directors has approved purchases of up to $5 million in cryptocurrencies, to 10% of excess operational cash. This shift is planned to protect the company’s assets against inflation and to enhance transaction efficiency.
“Our upcoming adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value. As we expand our product offerings and global reach, cryptocurrency has the potential to be a strong strategic complement” noted Steven Rossi, Chief Executive Officer of Worksport Ltd.
The company noted that the total allocation for cryptocurrency investments will be up to a maximum of $5 million, which may be adjusted through future board resolutions. By strategically allocating resources to Bitcoin and XRP and embracing cryptocurrency payments, Worksport positions itself at the forefront of financial innovation.
The strategy includes accepting cryptocurrency payments on their e-commerce platform, which is expected to reduce transaction processing fees by up to 37%. The company may also convert interest earnings from money market accounts into cryptocurrencies and allocate a portion of future capital raises to BTC and XRP holdings.
Rossi further underscored Bitcoin and XRP’s acceptance as major asset classes amongst investors. He noted that yheir inflation-resistant characteristics make them increasingly reliable stores of value.
“By strategically allocating a portion of our treasury to these digital assets and accepting crypto payments, we’re enhancing our financial strategy and aligning ourselves with the future of global finance. We believe this move will strengthen our balance sheet and provide long-term value to our shareholders,” he underscored.
Notably, this initiative comes amid strong financial performance, with Q3 revenue reaching $3.12 million, representing a 581% year-over-year increase from $458,433 in Q3 2023.
