XRP’s recent surge in price has caught the attention of institutional investors, with Worksport and The BC Bud Co. announcing their plans to include the token in their treasury strategies. While Bitcoin has traditionally been the go-to choice for corporate crypto investments, XRP’s impressive 300% rally over the past month has propelled it into the top three digital assets by market capitalization.
Market observers believe that this rally has encouraged smaller firms to explore XRP as they seek to capitalize on the growing momentum surrounding the token. Worksport, a Nasdaq-listed truck cover manufacturer, recently announced its intention to diversify its treasury by investing up to $5 million in Bitcoin and XRP. The company plans to allocate 10% of its surplus operational cash to these digital assets as a hedge against inflation and to enhance its financial strategy.
Worksport also revealed its plans to accept crypto payments on its e-commerce platform, anticipating significant transaction cost reductions. The company aims to reinvest interest earned from money market accounts into Bitcoin and XRP, considering future capital allocations to build long-term crypto reserves. CEO Steven Rossi highlighted Bitcoin and XRP as resilient assets that are well-suited for a modern treasury approach, emphasizing their potential to preserve value and drive financial innovation.
On the other hand, Canadian cannabis company The BC Bud Co. made a CAD 250,000 investment in XRP using cash reserves held in Canadian accounts. This move aligns with the company’s strategy to maximize shareholder value through exposure to emerging financial assets. CEO Brayden Sutton cited XRP’s recent legal and market advancements as reasons for the compelling investment choice, pointing to global interest in XRP exchange-traded funds (ETFs) and positive sentiment towards crypto in the political landscape.
Sutton also highlighted XRP’s potential to align with evolving financial trends while driving long-term returns for shareholders. As more companies explore alternative crypto investments beyond Bitcoin, XRP’s recent performance and market advancements are positioning it as a viable option for corporate treasuries looking to diversify and capitalize on the growing crypto market.