TLDR:
- VVPR Stock Jumps 5.28% on $300M JV with Lean Ventures for Ripple Shares
- VivoPower Secures $300M JV to Acquire Ripple Labs Shares, Boosting Stock
- VivoPower Targets $300M in Ripple Shares with Lean Ventures, Stock Surges
- VivoPower Partners with Lean Ventures for $300M Ripple Labs Acquisition
- VVPR Gains 5.28% After Announcing $300M JV to Procure Ripple Shares
VivoPower International PLC ( VVPR) announced a definitive joint venture (JV) agreement with Lean Ventures, a South Korea-based asset manager, to acquire $300 million in Ripple Labs shares. This partnership aims to target institutional and retail investors, particularly in South Korea, to buy an initial tranche of Ripple shares. Following the announcement, VivoPower’s stock rose by 5.28%, bringing the market price to $2.1150.
VivoPower International PLC, VVPR
This agreement is a significant step in VivoPower’s strategy to expand its digital asset portfolio and gain exposure to Ripple Labs and XRP tokens without using its own balance sheet.
VivoPower’s Role in the Joint Venture with Lean Ventures
VivoPower’s digital asset unit, Vivo Federation, will play a key role in the JV by procuring Ripple Labs shares for the investment vehicle. Vivo Federation has already secured approval from Ripple Labs to buy an initial tranche of preferred shares and will continue to negotiate additional purchases. The structure of the JV allows VivoPower to benefit from fee-based exposure to Ripple Labs shares, targeting net economic fees of $75 million over the next three years. This arrangement requires no capital commitment from VivoPower’s balance sheet, making it a low-risk strategy to gain significant exposure to Ripple’s potential growth.
The JV with Lean Ventures also includes strong backing from qualified South Korean institutional and retail investors. Lean Ventures, an established asset manager managing funds for the South Korean government, will help drive interest and investment in the dedicated vehicle. This strategic collaboration enables VivoPower to enter the rapidly growing South Korean market, which is a key player in the global XRP market, with South Korea being the largest holder of XRP tokens.
Growth Potential for VivoPower and Ripple Labs Shares
VivoPower’s new partnership with Lean Ventures adds significant value to the company’s digital asset strategy. By targeting a $300 million investment in Ripple Labs shares, VivoPower secures potential long-term gains without risking its own capital. The JV also positions VivoPower to benefit from any future upside in Ripple’s valuation, especially with the growing interest in XRP as a digital asset.
VivoPower’s recent efforts in the XRP space align with its broader business strategy. The company’s pivot towards digital assets, alongside its ongoing initiatives in electric vehicle (eLV) solutions through Tembo, marks a shift toward high-growth markets. The success of the Ripple Labs JV can further bolster VivoPower’s position in the digital asset sector, while the partnership with Lean Ventures ensures a steady, fee-based income stream from the growing XRP market.
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