Just In: Worksport To Adopt Bitcoin And XRP For Corporate Treasury
Highlights
- Worksport to adopt Bitcoin and XRP as part of its corporate treasury strategy.
- The company's Board of Directors already approved the purchase of up to $5 million in BTC and XRP.
- Worksport also plans to allocate some of the proceeds from future capital raises to buying more BTC and XRP.
US-based manufacturer Worksport is the latest institution to jump on the crypto wave. The company announced that it would adopt Bitcoin and XRP for its corporate treasury and revealed how much it has allocated to purchase these coins and begin the crypto strategy.
Worksport To Adopt Bitcoin And XRP
In a press release, Worksport announced its plans to adopt Bitcoin and XRP, marking a significant advancement in its corporate treasury strategy. To kickstart this crypto strategy, the company’s Board of Directors has approved the purchase of up to $5 million in Bitcoin and XRP, limited to a maximum of 10% of excess operational cash.
Commenting on this development, the company’s CEO, Steven Rossi, said,
“Our upcoming adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value. As we expand our product offerings and global reach, cryptocurrency has the potential to be a strong strategic complement.”
This move comes as the Bitcoin price hit $100,000 today, indicating that institutions are already beginning to feel some FOMO as the flagship crypto continues to rally. XRP has also enjoyed a recent rally, recording up to 200% gains in this process.
Worksport stated that this strategic move is intended to enhance transaction efficiency. The company further remarked that it underscores its long-term belief in cryptocurrencies as a store of value and a hedge against inflation, aligning with the growing global acceptance and institutional adoption.
Indeed, more institutions are beginning to follow in MicroStrategy’s footsteps as they adopt Bitcoin as an asset on their balance sheet. MicroStrategy is also not relenting in its effort to acquire more BTC, as the software company recently acquired 15,400 BTC for $1.5 billion.
How The Crypto Strategy Would Work
Worksport also outlined key components of the Bitcoin and XRP strategy in the press release. In addition to committing up to 10% of any excess cash to purchase these cryptos, the manufacturer will also enable crypto e-commerce.
The company will accept crypto payments on its e-commerce platform, enhancing customer convenience and expanding its payment options. Worksport noted that crypto transactions could cost 37% less in transaction processing fees.
Furthermore, the company mentioned interest earnings conversion as part of the Bitcoin and XRP strategy. The manufacturer may convert interest earnings from cash held in money accounts into Bitcoin and XRP. Lastly, there will be future capital raises, whereby some of the proceeds from the future capital initiatives may go to acquiring more coins.
This initiative will be similar to what companies like MicroStrategy and Bitcoin miner Marathon Digital already do. MARA recently announced plans to raise $700 million through a private note offering, with some proceeds going to Bitcoin acquisition.
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