XRP Adoption in Corporate Treasury Reserves: Worksport and BC Bud Co Investments
XRP, a digital asset that has been making waves in the market recently, has found its way into corporate treasury reserves with Worksport and The BC Bud Co making significant investments in the token. This move comes as institutional interest in XRP grows, with companies looking to diversify their treasuries amidst the cryptocurrency’s rising market appeal.
Worksport’s $5 million Bitcoin and XRP allocation
Worksport, a Nasdaq-listed truck cover manufacturer, recently announced its plans to invest up to $5 million in Bitcoin and XRP as part of its treasury diversification strategy. By allocating 10% of its surplus operational cash to these digital assets, Worksport aims to hedge against inflation and enhance its financial strategy. The company also intends to start accepting crypto payments on its e-commerce platform, expecting significant transaction cost reductions. Furthermore, Worksport plans to reinvest interest earned from money market accounts into Bitcoin and XRP, with potential future capital allocations to build long-term crypto reserves. Steven Rossi, the CEO of Worksport, highlighted the resilience of Bitcoin and XRP as assets well-suited for a modern treasury approach, emphasizing their value preservation and potential for financial innovation.
BC Bud Co.’s investment in XRP
The BC Bud Co., a Canadian cannabis company, has also joined the trend by investing CAD 250,000 (equivalent to $178,000) in XRP using cash reserves held in Canadian accounts. This strategic move aims to maximize shareholder value through exposure to emerging financial assets. CEO Brayden Sutton pointed to XRP’s recent legal and market advancements as reasons for the company’s decision, citing global interest in XRP exchange-traded funds (ETFs) and a pro-crypto sentiment in the political landscape as factors contributing to the asset’s appeal. Sutton believes that XRP aligns with evolving financial trends while offering the potential for long-term returns for shareholders.
XRP’s growing popularity in corporate treasuries reflects a broader shift in the market, with companies exploring alternative digital assets beyond Bitcoin. The recent surge in XRP’s price has undoubtedly caught the attention of institutional players, prompting Worksport and BC Bud Co to seize the opportunity and incorporate the token into their financial strategies. As more companies follow suit, the landscape of corporate treasury reserves is likely to see further diversification, with XRP emerging as a key player in the digital asset space.