Ripple thinks its SPAC can break XRP stocks losing streak
Ripple reportedly wants to launch a digital asset treasury (DAT) with $1 billion worth of XRP, despite stocks or DATs with substantial XRP holdings historically failing to perform.
For example, on May 28, VivoPower International traded at $8.49 per share on its announcement of a $121 million private placement to buy XRP.
Today, those same shares have declined 50% to $4.25 apiece and impute a mere $43 million market capitalization.
Meanwhile, on May 29, Webus International Limited announced its dreams of becoming a $300 million XRP DAT.
Shares hit $4.25 that day but today, have declined 63% to $1.56.
And, on July 24, Wellgistics attempted to form an XRP DAT with a $50 million credit deal.
However, since hitting a high of $1.79 per share within 24 hours of the announcement, those shares have declined 70% to $0.52.
Read more: Years of hype but still no deal: SWIFT sidesteps XRP again
Even the couple XRP stocks that rallied barely count
A couple of stocks trade that for a few pennies per share, like Nature’s Miracle Holding, have increased in price since becoming XRP micro-DATs.
Galaxy Digital, which has $115 million worth of XRP, has also increased in price since its June 30 acquisition. However, its $15 billion market cap and diversified holdings dwarf any meaningful contribution of XRP.
In summary, the list of failed XRP DATs is long, and successes are almost non-existent. Nevertheless, Ripple is excited about adding another to the list.
According to Bloomberg, it’s planning to contribute some of its own XRP and raise money to put at least $1 billion worth of XRP into some new, unnamed public company.
It plans to use a special purpose acquisition company or SPAC — a type of stock with a disastrous record of shareholder returns.
Year to date, XRP has rallied 16%, in-line with bitcoin and the broader crypto market.
In unrelated deals, Ripple has spent $2.45 billion this year on acquisitions: $1 billion for software provider GTreasury, $1.25 billion for prime broker Hidden Road, and $200 million for stablecoin platform Rail.
Got a tip? Send us an email securely via Protos Leaks. For more informed news, follow us on X, Bluesky, and Google News, or subscribe to our YouTube channel.