Worksport, a U.S.-based manufacturer specializing in hybrid and clean energy solutions for the light truck, overlanding, and consumer goods sectors, has announced a significant shift in its corporate treasury strategy by adopting Bitcoin (BTC) and Ripple (XRP).
The company’s Board of Directors has approved an initial purchase of up to $5 million in BTC and XRP, limited to 10% of excess operational cash. The integration of cryptocurrency is seen as a powerful complement to its broader growth strategy, which involves expanding its product offerings and global reach.
In addition to purchasing Bitcoin and XRP, Worksport also plans to integrate cryptocurrency payments on its e-commerce platform, which is expected to lower transaction processing fees by up to 37%. The company will also explore converting interest earnings from money market accounts into Bitcoin and XRP. Furthermore, a portion of funds raised in future capital initiatives may be allocated to long-term holdings of these digital assets.
CEO Steven Rossi highlighted the importance of this move, stating that adopting Bitcoin and XRP aligns with the company’s strategy to stay ahead of market trends while enhancing operational efficiency and shareholder value.
Rossi emphasized that Bitcoin and XRP’s increasing acceptance as major asset classes makes them attractive options for the company’s treasury. He added that their inflation-resistant properties strengthen Worksport’s financial strategy, fortify its balance sheet, and create lasting value for its shareholders.
Worksport’s move aligns with the recent trend of Bitcoin to the balance sheets. Rumble, another U.S.-based company, recently announced that its board has approved a plan to diversify its corporate treasury. The strategy involves allocating up to $20 million from its excess cash reserves into Bitcoin.
The video-sharing and cloud services platform stated that the decision is aimed at accelerating its expansion into the cryptocurrency sector, reflecting the company’s growing interest in the cryptocurrency.
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