Worksport (WKSP) To Adopt Cryptocurrency, Bitcoin and XRP for Corporate Treasury
Company to Convert Interest Earnings to Cryptocurrency, Allocate Up to 10% of Excess Operational Cash, and Enable Crypto Transactions on Worksport.com
West Seneca, New York, December 5, 2024 — Worksport Ltd. (NASDAQ: WKSP) (“Worksport” or the “Company”), 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 cryptocurrencies BTC (Bitcoin) and XRP (Ripple). Under the initial resolution of this strategy, the Worksport Board of Directors has approved the purchase of up to $5 million in Bitcoin and XRP, limited to a maximum of 10% of excess operational cash. This strategic move is intended to enhance transaction efficiency and underscores the Company’s long-term belief in cryptocurrency as a store of value and a hedge against inflation, aligning with the growing global acceptance and institutional adoption.
Worksport’s 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 innovative portable power system and solar truck cover, propelling it toward the future of mobile energy.
Key Components of Worksport’s 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 Company’s commitment to these digital assets.
“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 Steven Rossi, Chief Executive Officer of Worksport Ltd. The total allocation for cryptocurrency investments will be up to a maximum of $5 million, which may be adjusted through future board resolutions. Worksport will strategically size its holdings based on prevailing market conditions to optimize asset performance.
Strategic Vision for 2025 and Beyond
Worksport’s 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 the SOLIS solar tonneau cover and 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 to 37% less, enhancing operational efficiency, aligning with global trends toward digital asset adoption and delivering increased value to shareholders and customers alike.
- 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 Bitcoin’s reputation as an inflation-resistant store of value, making it an attractive asset for corporate treasuries. Bitcoin, often dubbed “digital gold,” 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: “As 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, we’re 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.”
Worksport Q3 Earnings Call: Third quarter revenue surged to $3.12 million—a 581% year-over-year increase compared to $458,433 in Q3 2023. Worksport held its Q3 2024 earnings call on Wednesday, November 13, 2024. The prepared remarks and presented earnings call deck are available at Worksport’s Investor Relations website.
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: $2MM+ 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 $2.8MM Grant
