Worksport (WKSP), a New York-based manufacturer of hybrid energy solutions, plans to use 10% of its excess operational cash to acquire Bitcoin and #XRP as part of its treasury strategy.
According to a press release, Worksport’s Board of Directors approved $5 million for the acquisition of Bitcoin and XRP. This move underscores the company’s long-standing belief in crypto as a hedge against inflation and a store of value.
Four Components of Worksport Crypto Strategy
Per the press release, the company highlighted four components of its Bitcoin and XRP strategy.
The first strategy involves using 10% of its excess operational cash reserve for XRP and Bitcoin acquisition. With the company’s excess cash reserve standing at around $50 million, a maximum of $5 million will be allocated to its initial investment in Bitcoin and XRP.
Second, Worksport will accept crypto payments, including XRP and Bitcoin, on its e-commerce platform. This move aims to enhance customer experience, expand Worksport’s payment options, and drastically reduce payment processing costs by up to 37%.
Furthermore, Worksport plans to convert the interest earned from its cash savings in money market accounts to Bitcoin and XRP. If the firm implements this, it will gradually increase its exposure to the two cryptocurrencies.
Lastly, Worksport proposed using a portion of its future capital fundraising to increase its Bitcoin and XRP holdings. Through this effort, Worksport intends to make both assets a major part of its financial strategy.
