Nasdaq-Listed VivoPower Secures $121 Million to Pioneer XRP Treasury Strategy with Saudi Royal Backing

In a landmark move for corporate adoption of digital assets, VivoPower International PLC (Nasdaq: VVPR), a sustainable energy solutions company, has raised $121 million through a private share placement to establish what it claims to be the world’s first XRP-focused corporate treasury strategy. Announced on May 28, the capital raise, led by a $100 million investment from Saudi Arabia’s Prince Abdulaziz bin Turki Abdulaziz Al Saud, marks a significant step in bridging traditional finance and the cryptocurrency ecosystem, particularly the XRP Ledger (XRPL). The funds will primarily support XRP acquisition, decentralized finance (DeFi) initiatives, debt reduction, and working capital, signaling a bold pivot for the Nasdaq-listed firm.

Strategic Shift to XRP Treasury

The private placement involved issuing 20 million ordinary shares at $6.05 each, priced above VivoPower’s prior closing price, in a deal managed by Chardan under Regulation S, which allows offerings to non-U.S. investors without SEC registration. This capital infusion aims to position VivoPower at the forefront of the XRP Ledger (XRPL) ecosystem, leveraging XRP’s fast, low-cost transaction capabilities for potential applications in cross-border payments and DeFi.

Prince Abdulaziz’s involvement highlights the deal’s credibility. “We have been investors in the digital asset sector for a decade and have been long-term holders of XRP. After reviewing several 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 the XRPL ecosystem,” he said.

The strategy is further bolstered by the advisory role of Adam Traidman, a former executive of SBI Ripple Asia, whose expertise in the XRP Ledger adds technical depth to VivoPower’s ambitions.

XRP’s Growing Corporate Appeal

VivoPower’s move comes as corporate treasury strategies embracing cryptocurrencies gain momentum. Companies like Strategy and Mtaplanet have previously adopted Bitcoin, but XRP’s focus on efficient cross-border transactions sets it apart. As of press time on May 28, XRP is trading at approximately $2.28, with a market capitalization of $134 billion, reflecting a 0.3% decrease over the past 24 hours. Historically, XRP has been a polarizing asset due to Ripple’s ongoing regulatory challenges with the U.S. Securities and Exchange Commission (SEC). In 2023, a U.S. court ruled that XRP sales on public exchanges did not constitute securities offerings, providing clarity for institutional adoptions. This ruling has bolstered confidence in XRP’s utility for corporate use, particularly in regions like the Middle East, where digital asset adoption is accelerating.

In the U.S., several companies, including Grayscale and Fidelity, have submitted XRP ETF applications to the SEC. Although none have been approved yet, industry experts are optimistic about the potential approval of an XRP ETF in 2025, reflecting growing market and institutional confidence in XRP.

Challenges and Opportunities

VivoPower’s stock surged 12.75% in trading on May 28 following the announcement, closing at $6.81, signaling investor confidence in the XRP strategy.

While the move is ambitious, it is not without challenges. Integrating XRP into a corporate treasury requires navigating complex regulatory landscapes. Additionally, the success of VivoPower’s DeFi initiatives will depend on the scalability and adoption of XRPL-based solutions, which face competition from faster blockchains like Solana and Polygon.

Nevertheless, the backing of a Saudi royal investor and Schwartz’s advisory role provide a strong foundation. The Middle East has emerged as a hub for crypto innovation, with Saudi Arabia’s Vision 2030 emphasizing digital transformation. VivoPower’s strategy could catalyze further XRP adoption in the region, particularly for financial institutions exploring blockchain-based remittances.