Worksport (WKSP) To Adopt Cryptocurrency, Bitcoin and XRP for Corporate Treasury
Worksport (NASDAQ: WKSP) announces a strategic move into cryptocurrency, planning to adopt Bitcoin (BTC) and XRP for its corporate treasury. The Board approved purchases of up to $5 million in cryptocurrencies, to 10% of excess operational cash. The company will also accept crypto payments on its e-commerce platform, with expected transaction cost savings of up to 37%.
The initiative includes converting interest earnings from money market accounts into cryptocurrencies and potentially allocating a portion of future capital raises to BTC and XRP holdings. This strategy follows strong Q3 2024 performance, with revenue reaching $3.12 million, representing a 581% year-over-year increase from $458,433 in Q3 2023.
Worksport (NASDAQ: WKSP) annuncia una mossa strategica nel mondo delle criptovalute, pianificando di adottare Bitcoin (BTC) e XRP per la sua tesoreria aziendale. Il Consiglio ha approvato acquisti per un massimo di 5 milioni di dollari in criptovalute, pari al 10% del surplus di liquiditĆ operativa. Lāazienda accetterĆ anche pagamenti in criptovalute sulla sua piattaforma di e-commerce, prevedendo un risparmio sui costi delle transazioni fino al 37%.
Lāiniziativa include la conversione degli interessi guadagnati dai conti del mercato monetario in criptovalute e la possibile allocazione di una parte dei futuri aumenti di capitale agli investimenti in BTC e XRP. Questa strategia segue un forte andamento del terzo trimestre 2024, con ricavi che raggiungono i 3,12 milioni di dollari, corrispondenti a un incremento del 581% rispetto ai 458.433 dollari del terzo trimestre 2023.
Worksport (NASDAQ: WKSP) anuncia un movimiento estratĆ©gico hacia las criptomonedas, planeando adoptar Bitcoin (BTC) y XRP para su tesorerĆa corporativa. La Junta aprobĆ³ compras de hasta 5 millones de dĆ³lares en criptomonedas, lo que representa el 10% del exceso de efectivo operativo. La empresa tambiĆ©n aceptarĆ” pagos en criptomonedas en su plataforma de comercio electrĆ³nico, con un ahorro en los costos de transacciĆ³n previsto de hasta el 37%.
La iniciativa incluye la conversiĆ³n de los intereses generados de cuentas del mercado monetario en criptomonedas y la posible asignaciĆ³n de una parte de futuras recaudaciones de capital a las tenencias de BTC y XRP. Esta estrategia sigue un sĆ³lido desempeƱo en el tercer trimestre de 2024, con ingresos que alcanzan los 3,12 millones de dĆ³lares, lo que representa un aumento del 581% con respecto a los 458,433 dĆ³lares en el tercer trimestre de 2023.
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Worksport (NASDAQ: WKSP) annonce un mouvement stratĆ©gique vers les cryptomonnaies, prĆ©voyant dāadopter le Bitcoin (BTC) et lāXRP pour sa trĆ©sorerie dāentreprise. Le Conseil a approuvĆ© des achats dāun montant pouvant atteindre 5 millions de dollars en cryptomonnaies, reprĆ©sentant 10% de lāexcĆ©dent de liquiditĆ©s opĆ©rationnelles. Lāentreprise acceptera Ć©galement les paiements en cryptomonnaies sur sa plateforme de commerce Ć©lectronique, avec des Ć©conomies prĆ©vues sur les coĆ»ts de transaction pouvant atteindre 37%.
Cette initiative comprend la conversion des intĆ©rĆŖts gĆ©nĆ©rĆ©s par des comptes du marchĆ© monĆ©taire en cryptomonnaies et la possibilitĆ© dāallouer une partie des futures augmentations de capital aux avoirs en BTC et XRP. Cette stratĆ©gie fait suite Ć une performance solide au troisiĆØme trimestre 2024, avec des revenus atteignant 3,12 millions de dollars, ce qui reprĆ©sente une augmentation de 581% par rapport aux 458.433 dollars du troisiĆØme trimestre 2023.
Worksport (NASDAQ: WKSP) kĆ¼ndigt einen strategischen Schritt in den Bereich der KryptowƤhrungen an und plant die EinfĆ¼hrung von Bitcoin (BTC) und XRP fĆ¼r seine Unternehmensfinanzen. Der Vorstand genehmigte den Kauf von KryptowƤhrungen im Wert von bis zu 5 Millionen Dollar, was 10% des Ć¼berschĆ¼ssigen Betriebskapitals entspricht. Das Unternehmen wird auch Krypto-Zahlungen auf seiner E-Commerce-Plattform akzeptieren, mit erwarteten Kosteneinsparungen bei Transaktionen von bis zu 37%.
Die Initiative beinhaltet die Umwandlung von ZinsertrƤgen aus Geldmarktkonten in KryptowƤhrungen und die potenzielle Zuweisung eines Teils zukĆ¼nftiger Kapitalerhƶhungen an BTC- und XRP-BestƤnde. Diese Strategie folgt auf ein starkes Ergebnis im dritten Quartal 2024, mit einem Umsatz von 3,12 Millionen Dollar, was einem Anstieg von 581% im Vergleich zu 458.433 Dollar im dritten Quartal 2023 entspricht.
Positive
- Q3 2024 revenue increased 581% YoY to $3.12 million
- Expected 37% reduction in transaction processing fees through crypto adoption
- Board approved up to $5 million in cryptocurrency investments
Negative
- Received Nasdaq compliance extension, indicating listing concerns
Insights
This strategic shift towards cryptocurrency adoption represents a significant financial innovation for Worksport. The
maximum allocation and
cap on excess operational cash shows a measured approach to digital asset integration. The projected
reduction in transaction costs through crypto payments could materially impact the bottom line, especially given Q3ās substantial revenue of
. The dual-cryptocurrency strategy combining Bitcoinās store of value properties with XRPās transaction efficiency demonstrates sophisticated treasury management. However, cryptocurrency volatility poses risks that need careful management. The timing aligns with growing institutional adoption and potential Bitcoin ETF approvals, though regulatory uncertainties remain a consideration.
The treasury diversification strategy marks a bold yet calculated move for a company of Worksportās size. Converting interest earnings to cryptocurrency and allocating future capital raises to digital assets indicates a long-term commitment beyond mere transaction capabilities. With Q3 revenue showing
year-over-year growth, the company has demonstrated strong operational performance to support this initiative. The
cap on excess operational cash provides a prudent risk management framework while allowing meaningful exposure to potential cryptocurrency appreciation. The cost savings from reduced transaction fees could provide immediate operational benefits, though careful liquidity management will be important given cryptocurrencyās volatility.
Company to Convert Interest Earnings to Cryptocurrency, Allocate Up to
West Seneca, New York, Dec. 05, 2024 (GLOBE NEWSWIRE) ā Worksport Ltd.Ā (NASDAQ: WKSP) (āWorksportā or the āCompanyā), a U.S.-based manufacturer and innovator of hybrid and clean energy solutions for the light truck, overlanding, and global consumer goods sectors, today announced a significant advancement in its corporate treasury strategy by taking initial steps to adopt the cryptocurrenciesĀ BTC (Bitcoin)Ā andĀ XRP (Ripple). Under the initial resolution of this strategy, the Worksport Board of Directors has approved the purchase of up toĀ
Worksportās top line revenues continue to significantly expand. Worksport will update investors on holiday sales trends in the coming days. The Company is also preparing to release its innovativeĀ portable power systemĀ andĀ solar truck cover, propelling it toward the future of mobile energy.
Key Components of Worksportās BTC (Bitcoin) / XRP (Ripple) Strategy:
- Allocation of Excess Operational Cash: The Company will commit up to
10% of any excess cash from operations to purchase BTC (Bitcoin) and XRP (Ripple). - Crypto-Enabled Ecommerce: Worksport will accept cryptocurrency payments on its e-ecommerce platform, www.worksport.com, enhancing customer convenience and expanding its payment options. Cryptocurrency transactions are expected to cost the Company up to
37% less in transaction processing fees. - Interest Earnings Conversion: Worksport may convert interest earnings from cash held in money market accounts into Bitcoin and XRP.
- Future Capital Raises: A designated percentage of funds raised in future capital initiatives may be allocated to long-term holdings of Bitcoin and XRP, reinforcing the Companyās commitment to these digital assets.
āOur 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 complementā said Steven Rossi, Chief Executive Officer of Worksport Ltd. The total allocation for cryptocurrency investments will be up to a maximum of
Strategic Vision for 2025 and Beyond
Worksportās cryptocurrency initiatives are part of a broader strategy to innovate across all facets of its business. From American production of high-quality, highly demanded automotive accessories to developing clean energy products like theĀ SOLIS solar tonneau coverĀ andĀ COR portable energy system, and leveraging blockchain technology, Worksport is creating a diversified ecosystem designed for exponential growth.
Benefits of Accepting Crypto Payments
- Cost Efficiency Through Bitcoin and XRP Integration
By strategically allocating resources to Bitcoin and XRP and embracing cryptocurrency payments, Worksport positions itself at the forefront of financial innovation. Crypto transactions are anticipated to cost up toĀ
- Capitalizing on Pro-Crypto Momentum
The global shift toward pro-cryptocurrency policies and the increasing likelihood of Bitcoin exchange traded fund approvals have heightened the appeal of digital assets. These developments bolster Bitcoinās reputation as an inflation-resistant store of value, making it an attractive asset for corporate treasuries. Bitcoin, often dubbed ādigital gold,ā has evolved into a globally recognized store of value, offering unparalleled transparency, liquidity, and decentralization. XRP, with its fast and low-cost cross-border transaction capabilities, complements Bitcoin in reshaping the financial ecosystem
CEO Commentary
Rossi adds: āAs Bitcoin and XRP continue to gain investor attention and acceptance as major asset classes, we believe they may serve as strong treasury reserve assets. Their inflation-resistant characteristics make them increasingly reliable stores of value. By strategically allocating a portion of our treasury to these digital assets and accepting crypto payments, weāre enhancing our financial strategy and aligning ourselves with the future of global finance. With our core business growing rapidly and new products launching soon, diversifying our treasury complements our strong projected growth. We believe this move will strengthen our balance sheet and provide long-term value to our shareholders.ā
Worksport Q3 Earnings Call: Third quarter revenue surged to
Key 2024 Press-Releases:
- November 22: Worksport Announces
30% Increase in Production Capacity - November 21: CEO Insider Purchase; Worksport Investigates Short Selling
- October 29:
200% Growth in B2B Sales; Pre-Order Campaign Initiated For AL4 - October 17: Nasdaq Grants Extension To Regain Compliance
- October 17:
$2M M+ Projected Savings From New Strategic Initiative - September 30: Update On ISO Certification
- September 19: Alpha Launch of SOLIS & COR
- September 11: Worksport COR as an EV Range Extender for Tesla Model 3
- August 14: Record High Revenues;
275% Q2 Growth - May 8: Worksport Awarded
$2.8M M Grant
Read all Worksport press releases: [Link to All Press Releases].
About Worksport
Worksport Ltd. (Nasdaq: WKSP), through its subsidiaries, designs, develops, manufactures, and owns the intellectual property on a variety of tonneau covers, solar integrations, and NP (Non-Parasitic), hydrogen-based true green energy solutions for the sustainable, clean energy, and automotive industries. Worksport has an active partnership with Hyundai for the SOLIS Solar cover. Additionally, Worksportās hard-folding cover, designed and manufactured in-house, is compatible with all major truck models and is gaining traction with newer truck makers including the EV sector. Worksport seeks to capitalize on the growing shift of consumer mindsets towards clean energy integrations with its proprietary solar solutions, mobile energy storage systems (ESS), and NP (Non-Parasitic), Hydrogen-based technology. Terravis Energyās website is terravisenergy.com. For more information, please visit investors.worksport.com.
Connect with Worksport
PleaseĀ followĀ theĀ CompanyāsĀ socialĀ mediaĀ accountsĀ onĀ XĀ (previouslyĀ Twitter),Ā Facebook,Ā LinkedIn,Ā YouTube, andĀ InstagramĀ (collectively, the āAccountsā), the links of which are links to external third party websites, as well as sign up for the Companyās newsletters atĀ investors.worksport.com. The Company does not endorse, ensure the accuracy of, or accept any responsibility for any content on these third-party websites other than content published by the Company.
Investors and others should note that the Company announces material financial information to our investors using our investor relations website, press releases, SEC filings, and public conference calls and webcasts. The Company also uses social media to announce Company news and other information. The Company encourages investors, the media, and others to review the information the Company publishes on social media.
The Company does not selectively disclose material non-public information on social media. If there is any significant financial information, the Company will release it broadly to the public through a press release or SEC filing prior to publishing it on social media.
For additional information, please contact:
Investor Relations, Worksport Ltd. T: 1 (888) 554-8789 -128 W:Ā investors.worksport.com W:Ā www.worksport.com E:Ā investors@worksport.com
Forward-Looking Statements
The information contained herein may contain āforwardālooking statements.ā Forwardālooking statements reflect the current view about future events. When used in this press release, the words āanticipate,ā ābelieve,ā āestimate,ā āexpect,ā āfuture,ā āintend,ā āplan,ā āproject,ā, āenvisionedā, āshould,ā or the negative of these terms and similar expressions, as they relate to us or our management, identify forwardālooking statements. These statements are neither historical facts nor assurances of future performance. Instead, they are based only on our current beliefs, expectations and assumptions regarding the future of our business, future plans and strategies, projections, anticipated events and trends, the economy and other future conditions. Because forward-looking statements relate to the future, they are subject to inherent uncertainties, risks and changes in circumstances that are difficult to predict and many of which are outside of our control. Our actual results and financial condition may differ materially from those indicated in the forward-looking statements. Therefore, you should not rely on any of these forward-looking statements. Important factors that could cause our actual results and financial condition to differ materially from those indicated in the forward-looking statements include, among others, the following: (i) supply chain delays; (ii) acceptance of our products by consumers; (iii) delays in or nonacceptance by third parties to sell our products; and (iv) competition from other producers of similar products. More detailed information about the Company and the risk factors that may affect the realization of forward-looking statements is set forth in the Companyās filings with the SEC, including, without limitation, our Annual Report on Form 10-K and our Quarterly Reports on Form 10-Q. Investors and security holders are urged to read these documents free of charge on the SECās web site at www.sec.gov. As a result of these matters, changes in facts, assumptions not being realized or other circumstances, the Companyās actual results may differ materially from the expected results discussed in the forward-looking statements contained in this press release. The forward-looking statements made in this press release are made only as of the date of this press release, and the Company undertakes no obligation to update them to reflect subsequent events or circumstances.
Worksport acknowledges the inherent risks of investing in cryptocurrency, including market volatility and regulatory uncertainties, and is committed to managing these risks through oversight and diversification strategies. The decision to pursue this investment has been reviewed and approved by the Board of Directors of Worksport and complies with the Companyās corporate governance policies.
FAQ
How much cryptocurrency investment has Worksport (WKSP) approved?
Worksportās Board has approved cryptocurrency purchases of up to $5 million in Bitcoin and XRP, to 10% of excess operational cash.
What was Worksportās (WKSP) revenue growth in Q3 2024?
Worksport reported Q3 2024 revenue of $3.12 million, representing a 581% increase compared to $458,433 in Q3 2023.
How much can Worksport (WKSP) save on transaction fees using crypto payments?
Worksport expects to save up to 37% on transaction processing fees by accepting cryptocurrency payments on its e-commerce platform.