Cryptocurrency XRP, owned by Ripple, now forms part of an agricultural company's treasury holdings.
In a significant development for the cryptocurrency market, several companies have announced their adoption of XRP as a strategic reserve asset. Among these are Nature's Miracle Holding Inc., VivoPower, and Trident Digital, all positioning XRP as a core component of their financial strategies.
Nature's Miracle Holding Inc., a publicly traded company (ticker: NMHI), recently announced the establishment of a corporate XRP treasury program with an initial value of up to $20 million. The company plans to finance the purchase of the token through a portion of the equity financing that will likely be issued from the Registration Statement on Form S-1, which was recently declared effective by the Securities and Exchange Commission (SEC).
James Li, CEO of Nature's Miracle, commented on the news, citing the signing of the GENIUS act as a reason for increased institutional interest in cryptocurrency. He believes the adoption of this Treasury program will benefit Nature's Miracle's shareholders and the company. Following the announcement, Nature's Miracle's stock is currently trading at $0.11, up over 110% in the day following the announcement.
VivoPower, a sustainable energy solutions company, plans to sell 20 million shares at $6.05 each to raise $121 million for the purchase of XRP. The company's focus is on acquiring XRP tokens as long-term reserves, deploying a staking mechanism to generate yield, and participating in the Ripple ecosystem. VivoPower's XRP purchase may contribute to the overall treasury program trend in publicly traded firms.
Trident Digital, based in Singapore, is raising $500 million in capital for an XRP-centric crypto treasury fund intended to lock up XRP coins for multiple years, signaling a large-scale institutional commitment similar to Nature's Miracle's $20 million treasury program. The reserve is supported by a $50 million Equity Line of Credit (ELOC) and potentially used to develop and unlock programmable liquidity and on-demand financial infrastructure.
Wellgistics Health's strategic reserve initiative is another example of companies adopting XRP as a treasury strategy. The company plans to use proceeds from GHS Investments for the purchase of XRP and capital needs. Adoption can be further increased by a combination of equity issuance, strategic placements, and structured financing instruments.
Besides Nature's Miracle Holding Inc., VivoPower, and the Singapore-based Trident Digital, there are other companies showing interest in XRP. Major financial institutions like Banco Santander and American Express, which are already engaged with XRP, may potentially hold XRP as a treasury asset or primarily use Ripple's network for payments.
ETFs and treasury strategies are observing rising adoption and corporate demand for XRP. As more companies embrace XRP, it is likely that we will see a continued growth in the use of XRP as a strategic reserve asset. The second-largest altcoin, XRP, has declined by about 10% over the past 24 hours but is still up 395% for the year. This trend suggests that despite short-term fluctuations, XRP remains an attractive investment option for many companies.
- Nature's Miracle Holding Inc., a publicly-traded company, has initiated a corporate XRP treasury program worth up to $20 million, intending to use equity financing for the purchase of XRP tokens and finance business strategies.
- VivoPower, a sustainable energy solutions company, is planning to sell 20 million shares to acquire XRP as long-term reserves, employ a staking mechanism to generate yield, and engage with the Ripple ecosystem, potentially setting a trend for publicly traded firms.
- Trident Digital, a Singapore-based firm, is raising $500 million for an XRP-focused crypto treasury fund, aiming to lock up XRP coins for extended periods and develop on-demand financial infrastructure, further indicating large-scale institutional commitment to XRP.
