Worksport adopts Bitcoin and XRP for corporate treasury

Worksport, a US-based van solutions provider, is adding cryptocurrency to its corporate treasury strategy.

The Nasdaq-listed company announced on December 5 that it would add Bitcoin (BTC) and XRP (XRP) to its treasury holdings. This follows the decision of the company’s board of directors to approve the initial purchase of $5 million worth of BTC and XRP.

The announcement stated that Worksport will allocate 10% of its excess operating cash to this corporate pivot.

“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,” said Steven Rossi, Worksport’s CEO. He said it has the potential to be a strategic complement.

While the initial allocation is targeted at up to $5 million, the company underlines that this change may be seen in future decisions. The company plans to strategically size acquired crypto assets based on current market conditions as it seeks to optimize returns.

The move will also see Worksport accept cryptocurrency for its products and services as part of a drive towards transaction efficiency. It is also eyeing Bitcoin’s use as a store of value as well as a 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 are advancing our financial strategy and aligning ourselves with the future of global finance,” Rossi added.

Reporting strong earnings in its third-quarter results, Worksport joins a long list of companies adding Bitcoin and cryptocurrency to their treasury strategies. This trend accelerated following a BTC buying spree by MicroStrategy, the world’s largest institutional holder of Bitcoin.

Meanwhile, Bitcoin price has surged above $100,000 amid intense demand, and analysts are predicting that the price could rise even further. XRP has outperformed in recent months following major bullish catalysts.