tl;dr
Worksport, a public company trading on the Nasdaq, has announced plans to invest $5 million in Bitcoin and XRP, with a commitment to allocate up to 10% of future excess cash for cryptocurrency purchases. The company also intends to accept cryptocurrency payments on its website. Worksport's CEO cited...
Worksport Ltd., a Nasdaq-traded public company, has unveiled its plan to incorporate cryptocurrency, Bitcoin, and XRP into its corporate treasury strategy. The company aims to enhance shareholder returns and shield against inflation through this initiative. Worksport intends to invest $5 million in Bitcoin and XRP, with a commitment to allocate up to 10% of future excess cash for further cryptocurrency acquisitions. Additionally, the company plans to accept cryptocurrency payments on its website.
MicroStrategy, a software firm, led the way for publicly-listed companies embracing a Bitcoin treasury strategy in 2020. Following its foray into Bitcoin investment, MicroStrategy experienced a surge in its stock price and subsequently rebranded itself as a "Bitcoin development company." Other U.S. public companies, including Cosmos Health and Tesla, have also ventured into Bitcoin and Ethereum investments, following in MicroStrategy's footsteps.
Worksport's CEO, Steven Rossi, emphasized the strategic value of cryptocurrency in complementing the company's expansion, with the goal of bolstering shareholder returns and mitigating the impact of inflation. The announcement of Worksport's intention to invest in cryptocurrency led to a 9% increase in the company's stock price.
XRP, the third-largest digital coin by market capitalization, was also mentioned in Worksport's plans for cryptocurrency investment. Worksport did not immediately respond to requests for comment. MicroStrategy, with over 400,000 Bitcoins in its possession, has witnessed substantial stock value growth following its Bitcoin investment, culminating in its repositioning as a "Bitcoin development company." Other American companies, such as Cosmos Health and Tesla, have also dabbled in Bitcoin and Ethereum investments, echoing the pattern set by MicroStrategy.