UK-based AI Computing Power Services provider vibo power is changing its digital asset exposure after agreeing to transfer a portion of its stake in Ripple Labs to South Korean company Kweather.
VivoPower plans to acquire a stake in a Kosdaq-listed company to support its exploration of artificial intelligence data centers, according to the company's Wednesday press statement. Under the agreement, the company will acquire a 20% stake in Kweather, valued at $4.3 million.
VivoPower's remaining stake in Ripple Labs will be acquired by Lean Ventures under a partnership disclosed last December. A company spokesperson told media outlets that the share transfer will be carried out at prevailing market prices and will be subject to Ripple Labs' internal approval procedures.
VivoPower maintains that it does not intend to add any cryptocurrencies to its balance sheet through these steps and has not recorded any total unrealized losses on its digital asset positions.
The transition to AI comes at the expense of the goal of becoming a treasure trove of XRP digital assets. In December, NASDAQ-listed companies Confirmed Its unit, Vivo Federation, announced it has partnered with South Korean asset management firm Lean Ventures to purchase $300 million worth of Ripple stock.
VivoPower pivots to AI with Ripple stock transfer
VivoPower will continue to expand its data center infrastructure business following a deal in late January that secured 291 megawatts of power land in Finland, company executives said. The sites are powered by renewable electricity that costs less than $4 per kilowatt-hour, the company said.
The Group has signed a definitive agreement to acquire OGDC Pte Ltd, a developer that holds economic rights in a portfolio of Finnish power-generated land. The acquisition will provide the foundation for the planned expansion of AI-oriented infrastructure in Europe within 12 months, starting with grid connectivity in Finland.
The transaction structure includes $13 million in cash at closing and additional contingent value rights with a conversion price of $15.
VivoPower is based in the UK but has camps around the world, including Australia, North America, Europe, the Middle East and South East Asia. B Corp-certified companies are currently pursuing a “power to X” strategy to develop and own low-cost, sustainable power and AI data center infrastructure.
In addition, the company has two divisions that are being separated or sold. One is Tembo, which develops power solutions for customized vehicle applications, and the other is Caret Digital, which works on renewable energy use cases including digital asset mining. Vivo Federation will maintain exposure to Ripple Labs' equity and blockchain real-world asset initiatives.
Company shareholders give green light to changes in capital framework
All six resolutions were approved by VivoPower International PLC's shareholders at an extraordinary general meeting on January 30, as VivoPower International PLC announced in a press release. All resolutions were approved with at least 93% of the total voting power supporting the resolution. The resolution aims to provide a market-based incentive system to attract senior talent from the AI and cryptocurrency industry.
A few days later, VivoPower terminated its market share offering agreement with Chardan Capital Markets, which was first signed on December 23rd. The Company has confirmed that it will not issue or sell any further common stock under its plans after evaluating its operating cash flows and capital needs.
Management stated that limiting equity dilution is feasible because the company's expected operating cash generation is sufficient and other non-economically dilutive financing instruments are available.
