Catenaa, Thursday, December 12, 2024- Worksport Ltd., a Nasdaq-listed manufacturer of pickup truck accessories, announced Thursday it is investing $5 million in Bitcoin and XRP as part of its treasury strategy. The New York-based company plans to allocate up to 10% of future excess cash to cryptocurrency purchases and accept digital assets as payment on its website.
CEO Steven Rossi described the move as a “strategic complement” to Worksport’s expanding global operations, emphasizing its potential to enhance shareholder returns and act as an inflation hedge. The announcement lifted Worksport’s stock price by 9% on Thursday.
Bitcoin, the leading cryptocurrency by market cap, has been embraced by numerous companies as a treasury asset. MicroStrategy, a software firm that pioneered the strategy in 2020, now holds over 402,000 BTC valued at $40.5 billion. Its Bitcoin-focused approach has significantly boosted its stock performance and reshaped its identity as a “Bitcoin development company.”
XRP, the third-largest cryptocurrency by market cap, is also part of Worksport’s investment plan. XRP powers Ripple, a fintech company specializing in cross-border payments. Worksport’s adoption of XRP sets it apart from other firms following MicroStrategy’s playbook.
Other American companies incorporating Bitcoin into their treasuries include Tesla, which holds 9,720 BTC worth nearly $1 billion, and Cosmos Health, which recently announced plans to invest in Bitcoin and Ethereum. Publicly traded Bitcoin miners such as Marathon and Riot also retain large holdings.
Worksport’s move is seen as growing trend among institutions to go for reserves with digital assets amidst the ongoing cryptocurrency bull market.
