On December 5, Worksport, a U.S.-based manufacturer, saw its shares jump by 9.1% after revealing a new treasury strategy that embraces investments in Bitcoin and XRP. This move marks a significant shift in the company’s financial approach.
New Treasury Strategy
Worksport plans to allocate up to 10% of any excess cash from its operations toward purchasing Bitcoin (BTC) and XRP, beginning with an initial investment of up to $5 million. This strategy is intended to safeguard against inflation and diversify the company’s treasury assets.
Moreover, Worksport aims to facilitate cryptocurrency payments on its e-commerce platform, a change that is projected to cut transaction fees by 37%.
CEO’s Perspective
Steven Rossi, the company’s CEO, pointed out that increasing interest in Bitcoin and XRP has established them as notable asset classes. He views these cryptocurrencies as stable reserves due to their resilience against inflation, making them valuable additions to the company’s financial strategy.
Since its debut on Nasdaq in 2021, Worksport has dedicated itself to providing innovative energy solutions for trucks, including tonneau covers equipped with mobile solar generators. In optimizing its cash reserves, the company plans to convert interest income from money market accounts into Bitcoin and XRP while also earmarking some future fundraising efforts for cryptocurrency investments.
Broader Market Trends
Rossi underscored that by identifying specific portions of their treasury for digital assets and allowing crypto transactions, Worksport is not only enhancing its financial strategy but also adapting to the rapidly changing landscape of global finance.
This development is part of a broader movement among publicly traded companies that are increasingly leveraging their cash holdings to invest in digital currencies. MicroStrategy pioneered this trend in 2020, consistently adding Bitcoin to its balance sheet, which has resulted in impressive unrealized gains estimated at around $17 billion based on current market conditions.
Other companies following suit include Coinbase and various mining enterprises such as CleanSpark, Riot Platforms, and Hut 8. Additionally, non-traditional crypto entities—such as medical manufacturer Semler Scientific, e-commerce giant Mercado Libre, and Chinese tech firm Meitu—are also exploring the integration of digital assets into their financial structures.
Source: Cointelegraph
