Worksport, a U.S.-based provider of pickup truck solutions, is adding cyptocurency to its corporate treasury strategy.
The Nasdaq-listed company announced on Dec. 5 that it would be adding Bitcoin (BTC) and XRP (XRP) to its treasury assets. This follows a resolution by the company’s board of directors, which approved an initial purchase of $5 million worth of BTC and XRP.
Worksport is committing 10% of its excess operational cash to this corporate pivot, it said in the announcement.
“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. As we expand our product offerings and global reach, cryptocurrency has the potential to be a strong strategic complement,” Steven Rossi, chief executive officer of Worksport, said.
While the initial allocation targets up to $5 million, the company highlights that future resolutions could see this change. The company plans to strategically size the acquired crypto assets as per prevailing market conditions as it looks to optimize on returns.
The move will also see Worksport accept cryptocurrency for its products and services, part of the push for transaction efficiency. It’s also eyeing Bitcoin’s store of value use as well as to hedge against inflation. Other moves include converting interest earnings from cash to BTC and XRP.
“By strategically allocating a portion of our treasury to these digital assets and accepting crypto payments, we’re enhancing our financial strategy and aligning ourselves with the future of global finance,” Rossi added.
Worksport, which reported strong earnings in its third quarter results, joins a long list of companies adding Bitcoin and crypto to their treasury strategy. This trend has gathered speed following MicroStrategy’s BTC purchase spree that has it as the world’s largest corporate holder of Bitcoin.
Meanwhile, Bitcoin price has jumped to above $100k amid massive demand, with analysts predicting it could explode further. XRP has outperformed in recent months following major bullish catalysts.
