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%.
Worksport, a Nasdaq-listed company that specializes in the design and manufacture of truck accessories, is adding Bitcoin and XRP to its treasury holdings, according to a Thursday press release.
The move aims to diversify its the treasury strategy and improve overall financial stability. Worksport sees 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 stay ahead of market trends while prioritizing operational efficiency and shareholder value,” said Worksports CEO Steven Rossi.
Worksport plans to spend 10% of its cash reserves, which amount to a maximum of $5 million per report, on Bitcoin and XRP. The allocation ratio for crypto investments may 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 income from money market accounts into Bitcoin and XRP, and potentially allocating a portion of future capital raisings to these digital assets.
Rossi is a long-time XRP investor and a strong belief in decentralized assets, he shared in a interview.
“I believe that XRP becomes a much more stabilized currency and access”, Rossi stated. Although he admits 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 pretty well recently, I was nice surprised, and that confirmed that … these (are) early assets that really challenge central banks,” Rossi added.
The company reported strong financial results, with third-quarter revenue of $3.1 million, up 581% from $458,433 in the same period last year.
