VivoPower International (NASDAQ:VVPR) Allocates $100M to an XRP-Based Treasury System

Nasdaq-listed VivoPower International (NASDAQ:VVPR) is allocating $100 million to an XRP-based treasury system, with the goal of generating institutional yield

Nasdaq-listed VivoPower International (NASDAQ:VVPR) is allocating $100 million to an XRP-based treasury system. The goal is to generate institutional yield from decentralized protocols on the Flare Network.

This is part of a broader plan to build an XRP 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 company has a duty to its shareholders 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. This method 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.

Flare Network, backed by Ripple Labs (NYSE:PYPL), 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 the company’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.

Founded in 2014 and listed on Nasdaq since 2016, VivoPower is maintaining its other business units, Tembo and Caret Digital. Tembo is a sustainable energy technology company focused on e-mobility and e-LV, while Caret Digital provides digital marketing and advertising services to government agencies and institutions in the U.S.

VivoPower is also 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.

Earlier this year, an initial offer of $150 million for a 49% stake was made in March, but it was rejected by VivoPower’s board of directors.

The company 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.