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In summary
- Worksport invested $5M in Bitcoin and XRP, boosting its treasury strategy and accepting crypto as payment.
- Worksport shares rose 9% after announcing its focus on cryptocurrencies.
- MicroStrategy inspired other public companies to adopt Bitcoin as part of their balance sheets.
Smaller public companies are taking a leaf from MicroStrategy’s radical playbook by adopting a Bitcoin treasury strategy. And even one of them is also adding XRP (Ripple’s native token) to its coffers.
The latest to join the MicroStrategy-driven strategy is Nasdaq-listed (NASDAQ: WKSP) automotive company Worksport, which sells tonneau parts for pickup trucks. The New York-based company announced Thursday that it was in the process of spending $5 million on Bitcoin and XRP.
Worksport said it would allocate up to 10% of any future excess cash to purchase the cryptocurrencies in the future. It also added that it would accept Cryptocurrency as a form of payment on its website.
“As we expand our product offering and global reach, cryptocurrency has the potential to be a strong strategic complement,” Worksport CEO Steven Rossi said in the statement.
The company added that the purchase would increase returns for shareholders and act as a hedge against inflation. Worksport’s share price is up approximately 9% on the day following the announcement.
XRP is the third largest cryptocurrency by market capitalization. Its founders launched the fintech company Ripple, which allows institutions to move money across borders.
Worksport did not immediately respond to Decrypt’s request for comment.
Software company MicroStrategy became the first public company to list Bitcoin on its balance sheet in 2020 as a way to get the best results for shareholders, rather than holding excess cash.
Its stock has risen sharply as a result and now the company, which sells data analysis software, has rebranded itself as a “Bitcoin development company” that holds the cryptocurrency.
MicroStrategy now owns 402,100 Bitcoin—currently valued at approximately $40.5 billion, at a price of $100,670 per BTC.
Other US companies that have sought to achieve the same returns as MicroStrategy include health equipment company Cosmos Health (NASDAQ: COSM), which announced plans last month to buy Bitcoin and Ethereum, and electric car giant Tesla (NASDAQ: TSLA). .
The company, led by Elon Musk, first bought Bitcoin in 2020 before selling a portion of its holdings. He still owns 9,720 Bitcoin, which today is worth close to $1 billion.
Many publicly traded Bitcoin miners in the US, such as Marathon and Riot, also own large amounts of the cryptocurrency.
Edited by Andrew Hayward
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