VivoPower Joins Lean Ventures in $300 Million Ripple Labs Investment Plan

TLDR

• VivoPower and Lean Ventures form a joint venture to acquire $300 million in Ripple Labs shares.
• VivoPower will receive $75 million in fees from the joint venture over three years.
• South Korean investors can access Ripple shares at a discounted price through the new venture.
• VivoPower gains exposure to Ripple’s value without using its own capital for the investment.

VivoPower International PLC has entered into a joint venture agreement with Lean Ventures, a South Korean asset management firm. This collaboration aims to acquire up to $300 million in Ripple Labs shares. The joint venture is designed to allow VivoPower to manage the acquisition process through its digital asset unit, Vivo Federation, while providing significant exposure to Ripple’s potential upside.

Strategic Partnership with Lean Ventures

Lean Ventures, based in Seoul, is an established and licensed asset manager, known for managing funds for both South Korean institutions and government bodies. The joint venture aims to create a dedicated investment vehicle that will focus on acquiring Ripple Labs shares. South Korean institutional and retail investors will have the opportunity to purchase shares at a discounted price.

The partnership reflects VivoPower’s strategic interest in the South Korean market, a key region for Ripple Labs due to its substantial number of XRP holders. With the joint venture, VivoPower looks to meet the rising demand among South Korean investors who seek exposure to Ripple Labs and its digital assets.

VivoPower’s Role in the Joint Venture

Under the terms of the joint venture, VivoPower will play a pivotal role by procuring Ripple Labs shares for the dedicated investment vehicle. Vivo Federation, the digital assets arm of VivoPower, has already secured approval from Ripple Labs to purchase an initial batch of preferred shares. Furthermore, negotiations are ongoing to acquire additional shares from institutional holders, potentially bringing the total investment to $300 million.

For VivoPower, the joint venture is a significant opportunity to generate management and performance fees. The company anticipates receiving approximately $75 million in fees over the next three years. These fees will be generated from managing the assets under this joint venture, without requiring VivoPower to commit its own capital.

VivoPower’s Focus on Digital Assets and South Korea

The agreement with Lean Ventures marks a major step in VivoPower’s growing focus on digital assets. By gaining exposure to Ripple Labs’ shares, the company positions itself to benefit from the potential growth in Ripple’s valuation and the broader cryptocurrency market.

In particular, VivoPower’s collaboration with Lean Ventures underscores the importance of South Korea in VivoPower’s strategy. South Korea is one of the world’s largest holders of XRP tokens, making it an attractive market for the venture. By partnering with Lean Ventures, VivoPower can offer institutional and retail investors in the region a chance to invest in Ripple Labs at favorable terms.

Ripple’s Approval and Future Plans

VivoPower’s digital asset unit has already received written approval from Ripple Labs to purchase an initial tranche of shares. This approval paves the way for further purchases, subject to negotiation and market conditions. The total investment is expected to reach $300 million, depending on the success of the initial transactions and ongoing demand from investors.

The joint venture model allows VivoPower to gain economic exposure to Ripple’s future upside without directly committing capital from its balance sheet. This approach reduces financial risk while providing an opportunity to benefit from Ripple’s potential growth in the digital asset space.

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