Worksport, a publicly listed auto parts company in the US, announced plans to invest $5 million in Bitcoin and XRP as part of a strategy to diversify its holdings and improve transaction efficiency.
According to its statement, the move reflects the company’s confidence in cryptocurrency as a long-term store of value and a hedge against inflation, aligning with the global trend of institutional adoption.
Worksport Will Accept Crypto Payments
The company outlined its intent to allocate up to 10% of excess cash from operations toward crypto investments. The initial phase of this strategy will see a $5 million purchase of Bitcoin and XRP.
Following the announcement, Worksport’s stock (WKSP) gained over 6% on December 5. The company’s stock has seen losses throughout the year, declining over 50% year-to-date.
“Our upcoming adoption of Bitcoin (BTC) and XRP (Ripple) reflects our commitment to staying ahead of market trends while prioritizing operational efficiency and shareholder value. As we expand our product offerings and global reach, cryptocurrency has the potential to be a strong strategic complement,” said Worksport’s CEO, Steven Rossi.
Beyond its treasury strategy, Worksport plans to integrate crypto payments into its e-commerce platform. By doing so, the company anticipates a 37% reduction in transaction costs, which could enhance operational efficiency.
Worksport, listed on Nasdaq since 2021, specializes in energy solutions for trucks, including tonneau covers with integrated mobile solar power systems.
The firm also revealed plans to convert interest from money market accounts into Bitcoin and XRP. It will allocate portions of future capital raises to crypto investments.
MicroStrategy’s Bitcoin-First Approach is Influencing Smaller Public Firms
Overall, this approach follows a trend set by MicroStrategy, which began accumulating Bitcoin in 2020. Michael Saylor’s company purchased over $13 billion worth of BTC in the past month alone when it was hovering around $95,000.
Although initially criticized, this strategy has netted the company unrealized profits of nearly $20 billion at current market prices. Driven by Bitcoin’s latest surge, MicroStrategy has jumped into the list of top 100 public companies in the US.
This broader trend has also been adopted by companies like Marathon Digital Holdings (MARA) and Metaplanet, which continue to include Bitcoin in their corporate treasuries.
Earlier today, Bitcoin reached $100,000, a significant psychological milestone for investors. However, the price corrected back to $95,000 as traders hedged against potential market pullbacks.
Disclaimer
In adherence to the Trust Project guidelines, BeInCrypto is committed to unbiased, transparent reporting. This news article aims to provide accurate, timely information. However, readers are advised to verify facts independently and consult with a professional before making any decisions based on this content. Please note that our Terms and Conditions, Privacy Policy, and Disclaimers have been updated.
