Ripple Plans $1B XRP Treasury Fund Amid Price Slump

Ripple Labs is undertaking its largest fundraising effort specifically targeting XRP, with plans to raise at least $1 billion for a major XRP purchase through a new digital asset treasury (DAT). According to sources cited by Bloomberg, the capital will be managed within this new treasury structure, and Ripple intends to utilize a special purpose acquisition company (SPAC) to facilitate the fundraising. The company will also contribute some of its own XRP holdings to bolster the effort, demonstrating its commitment to the cryptocurrency despite recent market challenges.

This ambitious initiative comes at a critical juncture for XRP, which has seen its price decline by 24% over the last two weeks. Currently trading around $2.26, XRP rests on a crucial support level as October concludes. The timing of Ripple’s announcement suggests the company sees current market conditions as an opportunity to accumulate XRP at potentially favorable prices, though investor sentiment toward digital asset treasuries has become increasingly cautious following sharp declines in shares of major crypto firms including Michael Saylor’s Strategy and Japan’s Metaplanet.

In a parallel strategic development, Ripple announced the acquisition of treasury management software provider GTreasury for $1 billion. This acquisition is viewed as a strategic move to strengthen Ripple’s connections with corporate finance leaders and treasurers seeking access to tokenized deposits, stablecoins, and other digital assets. The GTreasury purchase complements the digital asset treasury initiative by providing the technological infrastructure needed to manage large-scale digital asset holdings effectively.

Ripple’s current XRP holdings are substantial, with 4.74 billion XRP tokens in its wallets valued at approximately $11 billion at current market prices. Additionally, another 35.9 billion XRP coins remain under escrow lockups, scheduled for monthly releases. These holdings position Ripple as a dominant force in the XRP ecosystem, with the fifth-largest cryptocurrency boasting a market capitalization of $138 billion. The combination of existing holdings, escrowed tokens, and the proposed $1 billion fundraising creates a comprehensive strategy for XRP accumulation and management.

Despite the recent price decline, market experts see potential for significant recovery. Market analyst Dark Defender noted on social media platform X that the correction had completed at the $2.22 level established in August, suggesting that the “Journey Towards $10 Resumes.” The expert reassures investors that the altcoin is entering a new recovery phase, with the $2.22 mark representing a crucial threshold for short-term price action.

According to Dark Defender’s analysis, this scenario could lead to a substantial rally of 340% in the coming months, building on the already impressive 320% gains recorded year-to-date. However, the analysis also acknowledges downside risks: should the current $2.26 support level falter and the $2.4 support fail to prevent further declines, XRP could retrace back toward the $1.2 level reached during the market crash on October 10. This creates a critical juncture for XRP’s price trajectory as Ripple moves forward with its treasury plans.