Midsize businesses add XRP to reserves amid 300% growth
Previously, corporate crypto investments were largely limited to Bitcoin
The impressive 300% growth of XRP over the past month, propelling it into the top three digital assets by market capitalization, has made Ripple’s token an attractive investment for smaller companies.
Market observers note a surge in institutional interest in XRP as businesses seek to diversify their treasury reserves amid the growing capitalization of the cryptocurrency market.
Previously, corporate crypto investments were largely limited to Bitcoin, but the list of potential assets now includes other cryptocurrencies as well.
U.S.-based truck cover manufacturer Worksport, listed on the Nasdaq, has unveiled plans to diversify its treasury by purchasing Bitcoin and XRP with investments of up to $5 million.
According to the company, it intends to allocate 10% of its surplus operating cash to these digital assets as a hedge against inflation and to enhance its financial strategy.
Additionally, Worksport plans to reinvest interest earned from money market accounts into Bitcoin and XRP, viewing these investments as long-term crypto reserves.
The company also announced that its e-commerce platform will begin accepting cryptocurrency payments, aiming to reduce transaction costs.
An ideal choice for small companies
Worksport CEO Steven Rossi described Bitcoin and XRP as resilient assets well-suited for modern treasury management approaches, emphasizing their potential for value preservation and as tools for financial innovation.
Meanwhile, Canadian cannabis producer The BC Bud Co. announced a CAD 250,000 ($178,000) investment in XRP. This move aligns with the company’s strategy to maximize shareholder value through exposure to new financial assets.
CEO Brayden Sutton highlighted XRP’s recent legal and market achievements, pointing to global interest in XRP-based ETFs and pro-crypto sentiment in political circles as factors boosting the asset’s appeal.
On November 29, two major XRP whale transactions totaling 139.39 million tokens were flagged by blockchain tracker Whale Alert. One transaction saw 104.39 million XRP, valued at $167 million, moved to an unknown wallet.
