Worksport Ltd. (NASDAQ: WKSP), a manufacturer specializing in innovative solar-powered automotive solutions, has announced plans to integrate crypto assets into its financial strategy. The company’s Board of Directors has approved up to $5 million in purchases of Bitcoin (BTC) and XRP (Ripple) as part of its corporate treasury reserve.
Bitcoin & XRP in Focus Amid Increased Corporate Buying
However, this allocation will not exceed 10% of the company’s excess operational cash. Nonetheless, this buying can prove to be extremely bullish for both Bitcoin and Ripple’s XRP. As BTC price has just surpassed the $103,000 mark today, this adoption can set the stage for further gains.
In addition, the XRP price can be primed for a reversal. Currently, the XRP token is struggling with a downfall, trading at $2.37, down by 7.46%. Thus, increased adoption as seen in the case of Worksport could offer the much-needed rebound for XRP price with a potential recovery above the $2.50 mark.
$WKSP to Adopt Cryptocurrency, Bitcoin and XRP for Corporate Treasury
— *Walter Bloomberg (@DeItaone) December 5, 2024
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Furthermore, the strategic initiative extends beyond treasury management. Worksport aims to accept cryptocurrency payments on its e-commerce platform, anticipating a reduction in transaction processing fees by up to 37%, according to a press release. Additionally, the company plans to convert interest earnings from its money market accounts into cryptocurrencies and allocate a portion of future capital raises to BTC and XRP holdings.
This decision aligns with the company’s strong financial momentum. Worksport reported a remarkable Q3 2024 revenue of $3.12 million, a 581% increase compared to $458,433 in the same period last year. The surge reflects the growing demand for the company’s products and its commitment to expanding revenue streams.
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Also Read: Breaking: Bitcoin crosses $100K; The Day Finally Arrives!
