- VivoPower allocated $100M in XRP to build a treasury system with Flare Network and Firelight protocol.
- The company partnered with BitGo for custody and plans to use Ripple’s RLUSD stablecoin as a cash equivalent.
- Financial data signals risk, yet VivoPower proceeds with XRP investments and Tembo dividend plans.
Nasdaq-listed VivoPower International (NASDAQ:VVPR) is allocating $100 million to an XRP-based treasury system, with the goal of generating institutional yield through decentralized protocols on the Flare Network.
This is part of a broader plan to build an XRP-based treasury system. VivoPower aims to generate income from protocols like Firelight and reinvest it into its XRP holdings.
The move presents an unconventional yet significant bet on the utility of digital assets for a public company, especially given recent financial metrics that highlight existing pressures on the firm’s balance sheet.
Kevin Chin, Executive Chairman and CEO of VivoPower, framed the move as a fiduciary duty, stating,
“It’s no longer enough to simply hold XRP; the duty to our shareholders is to make it productive.”
How Flare Network and BitGo Power the Strategy
To execute its plan, VivoPower has raised $121 million in private capital to fund the XRP acquisition. The company will partner with institutional-grade custodian BitGo to handle the storage and trading of the $100 million XRP allocation.
To generate yield, VivoPower will use Flare Network’s FAssets system, a method that allows XRP to be integrated with smart contracts and used in decentralized applications while remaining secure.
The partnership marks the first institutional-scale use of FAssets in the XRP ecosystem.
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Flare Network, backed by Ripple Labs, has a coin market capitalization of $1.9 billion. The network already has retail users through its partner Uphold, a platform with over 10 million users.
VivoPower also plans to use Ripple’s upcoming RLUSD stablecoin as its main cash-equivalent asset. This will help stabilize the company’s XRP treasury.
VivoPower Faces Financial Pressures Amid XRP Strategy Shift
This aggressive move into crypto comes at a critical time for the company. Recent financial metrics from InvestingPro have rated VivoPower’s overall financial health as “WEAK,” highlighting 11 risk indicators. Data shows the company has a current ratio of 0.3, a metric that suggests potential difficulty in meeting its short-term financial obligations.
VivoPower, founded in 2014 and listed on Nasdaq since 2016, is maintaining its other business units, Tembo and Caret Digital.
Tembo Divestment and SEC Filing
Alongside its new XRP strategy, VivoPower is engaged in other major corporate developments. The company is currently reviewing a new $200 million offer from Energi Holdings Limited.
The proposal is for a 51% stake in its subsidiary, Tembo e-LV B.V., increasing the previously assigned enterprise value.
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VivoPower set June 12, 2025, as the ex-dividend date for potential special dividend distributions related to Tembo. Shareholders on record by June 13, 2025, will be eligible. The company filed a registration statement with the U.S. Securities and Exchange Commission to offer its ordinary shares to the public. This filing supports its ongoing digital asset and XRP-focused plans.
While a special dividend is possible, the company said there is no guarantee that one will be paid.
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