VivoPower International PLC (NASDAQ: VVPR) announced that it raised $121 million by selling 20 million ordinary shares. According to the announcement, the funds raised largely came from His Royal Highness, Prince Abdulaziz bin Turki Abdulaziz Al Saud, with other investors including Adam Traidman, former Ripple board member and CEO of SBI Ripple Asia.
The company intends to use the funds to purchase XRP, thus achieving the status of the first publicly traded company to adopt the cryptocurrency as its treasury management asset. The company’s decision was heavily influenced by the recent announcement by the U.S. SEC that XRP is a strategic asset that will help the United States implement its strategic Bitcoin reserve plan in the near future.
Furthermore, XRP is well-positioned to grow exponentially in the coming months, especially with the imminent closure of the Ripple vs SEC case. In addition to investing directly in XRP, the newly created fund will also support DeFi projects on the XRPL chain.
“We have been investors in the digital asset sector for a decade and have been long-term holders of XRP. After reviewing a number of listed vehicles seeking to embrace a digital asset treasury model, we selected VivoPower given its strategic focus on XRP and its objective to contribute to building out of the XRPL ecosystem,” Prince Abdulaziz noted.
Expected Impact on the XRP Market
The imminent implementation of the XRP treasury fund by VivoPower will play a crucial role in the altcoins market structure ahead. Furthermore, the overall demand for XRP by institutional investors has significantly increased in the recent past following the crypto regulatory clarity in the United States.
As Coinpedia reported, several fund managers are seeking to offer spot XRP ETFs in the United States, which is highly anticipated to be approved by the end of this year.From a technical analysis standpoint, XRP price did not react immediately to the announcement, as the impact is ultimately long-term. The large-cap altcoin, with a fully diluted valuation of about $225 billion and a 24-hour average trading volume of around $2 billion, dropped around 3 percent today to trade about $2.26 on Wednesday, during the late North American session.
