Worksport (WKSP), a small company listed on the Nasdaq, has joined the trend of corporations buying bitcoin, popularized by Michael Saylor’s MicroStrategy (MSTR). However, Worksport has added its own twist by also investing in Ripple’s XRP.
The New York-based company, with a market capitalization of $20 million, plans to invest up to 10% of its cash reserves in bitcoin and XRP. This move is aimed at protecting the company’s assets against inflation and improving transaction efficiency.
Since the election of Donald Trump a month ago, several companies have announced their plans to hold extra cash in bitcoin. However, Worksport’s decision to also invest in XRP sets it apart from the others.
According to Worksport’s founder and CEO, Steven Rossi, XRP is becoming a more stable currency and asset. He believes that while it may experience volatility in the short term, it has the potential to bring value and is crucial for businesses to own decentralized assets.
Rossi, who has personally invested in XRP for a few years, sees it as a challenge to central banking. He also notes that many companies that have announced plans to diversify their Treasury reserves have seen their stock prices rally, even before investing in bitcoin.
However, Worksport’s stock price has fallen by 65% over the past five years. Rossi acknowledges that the market for small issuers like them has been slow, but as a cash-generating business, they are less reliant on stock price for survival.
The market’s reaction to Worksport’s decision remains to be seen, but the company is confident in its move to invest in bitcoin and XRP.
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