VivoPower International PLC (NASDAQ: VVPR) has entered into a definitive joint‑venture agreement with South Korean asset manager Lean Ventures to acquire and hold an initial target of $300 million of Ripple Labs shares. The partnership creates a dedicated investment vehicle that will procure Ripple shares on behalf of the vehicle, with Vivo Federation responsible for sourcing the shares while Lean Ventures manages the vehicle’s operations.
The structure of the deal is capital‑light for VivoPower: the company does not commit any balance‑sheet capital, instead earning a share of the management and performance fees. Management estimates that the joint venture will generate approximately $75 million in economic return over three years, a figure that reflects the fee‑based nature of the arrangement rather than direct equity upside.
The announcement was met with a strong market reaction, with analysts noting the size of the deal and the potential fee income. The partnership also aligns with VivoPower’s broader strategy to become an XRP‑focused digital‑asset enterprise, following its earlier $121 million private placement for an XRP treasury strategy and a $100 million budget for Ripple shares.
VivoPower’s financial performance in recent years has been challenging, with net losses reported in FY23 and FY22 and a decline in revenue during FY23. The new joint venture provides a fresh source of fee income for the company’s digital‑asset arm, offering a way to generate revenue without increasing debt or diluting equity.
Strategically, the partnership gives VivoPower direct access to the South Korean market, where XRP holdings are significant, and positions the company to benefit from any future upside in Ripple Labs’ valuation or XRP’s market performance. The capital‑light structure also mitigates balance‑sheet risk while allowing VivoPower to capture fee upside.
"The partnership will provide strategic market access in South Korea," said Adam Traidman, Chairman of VivoPower’s Advisory Council. "It strengthens our position in the XRP ecosystem and opens new revenue streams for our digital‑asset business."
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