Nasdaq-Listed Worksport to Add BTC and XRP to Treasury, Move Aimed at Enhancing Shareholder Value

Worksport, a Nasdaq-listed company, has announced plans to add bitcoin and XRP to its corporate treasury.

Crypto as a Store of Value

Worksport, a Nasdaq-listed (WKSP) manufacturer of hybrid and clean energy solutions for trucks, announced on Dec. 5 that it plans to add bitcoin (BTC) and XRP to its corporate treasury. The company’s board has already approved the resolution, which is intended to enhance transaction efficiency.

According to a statement, the purchase, limited to a maximum of 10% of excess operational cash, demonstrates Worksport’s “long-term belief in cryptocurrency as a store of value and a hedge against inflation.” The move also aligns with the growing trend of large corporations adopting cryptocurrency.

Steven Rossi, CEO of Worksport, said the adoption of the two cryptocurrencies underscores the company’s commitment to enhancing shareholder value.

“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,” Rossi said.

Capitalizing on the Crypto Rally

Worksport’s planned adoption of BTC and XRP comes just days after both cryptocurrencies reached new milestones. BTC, which has seen upward momentum in recent months, surpassed $100,000 for the first time on Dec. 5. XRP’s rally saw it temporarily surpass Tether as the third-largest digital asset.

While both cryptocurrencies have since retreated, some crypto advocates believe they will continue to grow in the coming year. At the time of writing, BTC appeared to be retesting the $100,000 level, while XRP traded at $2.36, about 14% below its Dec. 3 peak of $2.82.

In its statement, Worksport said by adopting BTC and XRP, the New York-based company will capitalize on the pro-crypto momentum, which is likely to be sustained by the approval of other crypto exchange-traded funds.

Regarding the choice of BTC and XRP, Rossi said:

“Their inflation-resistant characteristics make them increasingly reliable stores of value. 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. With our core business growing rapidly and new products launching soon, diversifying our treasury complements our strong projected growth.”

The CEO added that this move will strengthen Worksport’s balance sheet and provide long-term value to its shareholders.