Worksport Bets Big on Bitcoin and XRP – Here’s Why
In the latest developments at Nasdaq-listed pickup truck cover maker Worksport, Announce This is a strategic move into cryptocurrencies, with plans to adopt Bitcoin (BTC) and XRP (Ripple) for its corporate finance. The move is intended to diversify financial strategies and enhance overall financial stability.
The company’s board of directors has approved the purchase of up to $5 million in cryptocurrency, representing 10% of excess operating cash. The shift is designed to protect company assets from inflation and increase trading efficiency.
“Our impending adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value. Cryptocurrencies have the potential to grow as we expand our product offerings and global reach Becoming a strong strategic addition”, points out Steven Rossi, CEO of Worksport Ltd.
The company noted that the total allocation for cryptocurrency investments could be up to $5 million, which may be adjusted through a future board resolution. By strategically allocating resources to Bitcoin and XRP and embracing cryptocurrency payments, Worksport is positioning itself at the forefront of financial innovation.
The strategy includes accepting cryptocurrency payments on its e-commerce platform, which is expected to reduce transaction processing fees by up to 37%. The company may also convert interest income from money market accounts into cryptocurrencies and allocate a portion of future funds raised to BTC and XRP holdings.
Rossi further highlighted the acceptance of Bitcoin and XRP as primary asset classes among investors. He noted that their anti-inflation properties make them an increasingly reliable store of value.
“By strategically allocating a portion of our capital to these digital assets and accepting cryptocurrency payments, we are enhancing our financial strategy and aligning ourselves with the future of global finance. We believe this move will strengthen our balance sheet and deliver long-term value to our shareholders,” he stressed.
Notably, this move comes on the back of strong financial results, with third-quarter revenue reaching $3.12 million, a 581% year-over-year increase from $458,433 in the third quarter of 2023.
