Key Takeaways
- Worksport plans to allocate up to $5 million or 10% of its cash reserves to Bitcoin and XRP.
- The company will accept crypto payments on its e-commerce platform and expects to reduce transaction fees by up to 37%.
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Worksport, a Nasdaq-listed company specializing in the design and manufacture of truck accessories, is adding Bitcoin and XRP to its treasury assets, according to a Thursday press release.
The move is aimed at diversifying its treasury strategy and enhancing overall financial stability. Worksport views crypto assets like Bitcoin and XRP as inflation-resistant assets, and investing in these digital currencies is a way to protect its cash reserves from inflationary pressures.
“Our upcoming adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value,” said Worksport CEO Steven Rossi.
Worksport plans to spend 10% of its cash reserves, which amount to a maximum of $5 million per the report, on Bitcoin and XRP. The allocation ratio for crypto investments could change in the future “based on prevailing market conditions.”
The New York-based company will also accept crypto payments on its e-commerce platform, with crypto transactions expected to reduce processing fees by up to 37%.
Other initiatives include converting interest earnings from money market accounts into Bitcoin and XRP, and potentially allocating a portion of future capital raises to these digital assets.
Rossi is a long-time XRP investor and a strong believer in decentralized assets, he shared in an interview.
“I think that XRP is becoming a much more stabilized currency and asset,” Rossi stated. Despite acknowledging that it may still experience volatility in the short term, he expects the crypto asset to stabilize enough to provide investment value.
“When I saw my wallet and I saw that XRP has been doing quite well recently, I was pleasantly surprised, and it reaffirmed that … these [are] early assets that really challenge central banking,” Rossi added.
The company reported strong financial performance, with third-quarter revenue reaching $3.1 million, representing a 581% increase from $458,433 in the same period last year.
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