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VivoPower, a Nasdaq-listed company once focused on sustainable energy projects, has shifted its corporate strategy to building a digital asset treasury. Central to this pivot is its growing interest in XRP, one of the largest cryptocurrencies by market capitalization. Now, the firm is going a step further by attempting to acquire Ripple shares, which it claims trade at a steep discount to Ripple’s enormous XRP holdings.
According to Adam Traidman, a member of VivoPower’s advisory board and former Ripple executive, Ripple’s private shares often trade below the value of the company’s XRP treasury. Because Ripple remains a private firm, its stock doesn’t enjoy the liquidity of a public market. Deals are negotiated individually in secondary markets, sometimes offering prices well below Ripple’s actual crypto assets.
Why Ripple Shares Are Seen as Undervalued
Ripple controls billions of dollars’ worth of XRP, much of it held in escrow to manage supply. On Thursday, Ripple-linked wallets held roughly 42 billion XRP tokens, valued at $121 billion at market prices, according to data from CoinGecko. Yet, Ripple’s shares on secondary platforms like Forge have been trading at around $114, suggesting a valuation that VivoPower believes understates the company’s true worth.
This gap is what makes Ripple shares attractive to VivoPower. By purchasing equity, VivoPower sees an opportunity to gain indirect exposure to XRP at what it calculates to be an 86% discount compared to market value. Based on Ripple’s $19 billion valuation, the firm estimates it would be acquiring XRP at just $0.47 per token.
The Deal in Motion
Earlier this month, VivoPower confirmed plans to acquire $100 million worth of Ripple shares. The deal, once finalized, would reflect exposure to approximately 211 million XRP. Company co-founder and executive chairman Kevin Chin said the opportunity first emerged during a June conference in Singapore, followed by nearly two months of due diligence.
Chin noted that Ripple’s track record of disciplined XRP releases from escrow reassured VivoPower. “Ripple themselves are the largest holders of XRP, largely in escrow, and they’ve shown over more than 10 years that they’re disciplined in how it gets released into the market,” he explained.
Shares Not Directly From Ripple
Importantly, the shares VivoPower is seeking are not being sold by Ripple itself, according to a person familiar with the matter. Instead, the transactions involve private secondary markets where accredited investors, such as former Ripple employees, can sell their equity. These shares offer limited liquidity, often requiring lengthy negotiations and settlement periods of up to 60 days.
Ripple has occasionally provided liquidity through tender offers to employees, but otherwise, access to shares remains restricted. That limited supply and slow process add another layer of exclusivity to VivoPower’s strategy.
Market Reaction and Company Performance
Despite the ambitious crypto pivot, VivoPower’s own stock has been volatile. Shares were trading at $5.26 on Thursday, down from a recent high of $8.88 in late May but still showing nearly 300% growth year-to-date. The market appears to be closely watching whether the Ripple deal can strengthen the company’s digital asset credibility.
The strategy mirrors a broader trend of publicly traded companies moving into crypto asset accumulation. Firms from MicroStrategy with Bitcoin to smaller treasury firms investing in altcoins have found digital assets to be an alternative path for shareholder value creation.
Legal Clarity Encourages Move
VivoPower waited until Ripple resolved its long-running legal battle with the U.S. Securities and Exchange Commission (SEC) before pursuing the deal. Earlier this month, Ripple agreed to pay a $125 million penalty, ending years of litigation. With legal uncertainty behind Ripple, VivoPower believes the timing is right to gain exposure.
For investors, Ripple’s regulatory victory signals a more stable outlook, making its equity and XRP holdings more appealing to institutional buyers like VivoPower.
Toward Greater Transparency
One challenge remains: how to prove holdings. Traidman said VivoPower is preparing a transparency portal that will cryptographically verify its XRP reserves directly from the blockchain. However, Ripple equity cannot be verified the same way since it is off-chain. Instead, VivoPower plans to disclose its equity position publicly on its website, though it acknowledges this will rely on traditional reporting rather than blockchain-based proofs.
A Bigger Bet on XRP
VivoPower began building its XRP treasury in late May, moving away from renewable energy as its primary business model. While the firm has not disclosed the size of its XRP reserves, the Ripple share acquisition is meant to significantly expand its exposure.
By blending direct token holdings with indirect exposure through Ripple shares, VivoPower hopes to position itself as a unique corporate holder of XRP. If Ripple shares remain discounted relative to the company’s crypto treasury, VivoPower believes it has found a cost-efficient way to strengthen its digital asset portfolio.
Broader Implications
The move highlights how crypto-tied equities are gaining appeal among institutional investors. Ripple, one of the few blockchain firms with both a thriving business and massive native token holdings, represents a hybrid play between equity value and crypto exposure.
For Ripple, investor demand in secondary markets demonstrates confidence even as its public listing remains uncertain. For VivoPower, the strategy signals a bold bet that discounted Ripple shares can deliver long-term value and complement its treasury ambitions.
As digital asset markets mature, deals like this suggest a growing convergence between traditional corporate strategies and crypto-driven opportunities. If successful, VivoPower’s approach may inspire other firms to pursue similar hybrid investment strategies in the crypto space.
