Tesla Supplier Worksport Adds Bitcoin (BTC) and XRP to Treasury Reserves

Cryptocurrency

Tesla Supplier Worksport Adds Bitcoin (BTC) and XRP to Treasury Reserves – Crypto News

Published

1 year ago

January 30, 2025

Dripp

Worksport, a clean energy solutions auto tech company and a Tesla supplier, has announced plans to add Bitcoin (BTC) and XRP cryptocurrencies as part of the company reserves. The company said that this decision is part of global developments as BTC continues to make inroads as part of corporate treasury.

Worksport Commits to Long-Term Bitcoin Holding

This week, Worksport announced its first six-figure investment in Bitcoin (BTC) and Ripple (XRP) while signaling its long-term commitment. Additionally, the company also plans to expand its holdings as excess cash reserves grow, aligning with the Bitcoin and XRP treasury strategy. This strategy dedicates a portion of the company’s cash reserves to BTC and XRP investments.

The announcement pushed the WKSP stock up by 4%, above $1.0 on Wednesday, with an additional 2% gain after market hours.

Following its initial acquisition, Worksport stated that it would closely monitor regulatory developments under the Trump administration, as it plans to expand its portfolio further. Moreover, the auto tech firm is playing smart by betting on both – Bitcoin and XRP – amid the ongoing debate on crypto reserves.

The company also plans to integrate cryptocurrency payment options on Worksport.com. This initiative will provide customers with greater flexibility while aligning with the company’s broader goal of using blockchain and digital assets to boost operational efficiency. Speaking on the development, Worksport Chief Executive Officer Steven Rossi, said:

“Our business has been growing rapidly, with revenues up and margins steadily improving. We believe our strategic treasury plan is a low-risk approach to hedge inflation and potentially benefit from increasing regulatory clarity around cryptocurrencies. We hold a long-term view on our current BTC and XRP holdings.”

Coinbase Will Be The Crypto Custodian

In order to keep its crypto reserves safe, Worksport has chosen Coinbase as its crypto custodian. The firm highlighted Coinbase’s strong regulatory compliance, advanced security protocols, and insurance-backed custody solutions as key factors in selecting the platform.

CEO Steven Rossi said that having a top-tier crypto custodian is similar to partnering with a top-tier bank. Furthermore, Coinbase also serves as a custodian to some of the top financial institutions like BlackRock and manages nearly 90% of all Bitcoin ETFs.

This treasury update aligns with Worksport’s broader growth strategy, which includes plans for a significant revenue increase in 2025. Moreover, this collaboration will also simplify Worksport’s entry into the cryptocurrency market, furthering its strategic objectives, stated the company.

Tesla’s Q4 Bitcoin Holding Valuation Soars

Tesla ended 2024 with its Bitcoin holdings valued at $1.076 billion, a sharp rise from $184 million reported in previous quarters. The adjustment contributed an additional $600 million to Tesla’s GAAP revenue, bringing the total to $2.3 billion. As a result, Tesla stock gained more than 4% in the after-hours on Wednesday.

As of press time, the Bitcoin price is trading 3% up at $105,359 with a market cap of $2.087 trillion. For a new rally to all-time highs, Bitcoin first needs to break past the $106K resistance. The daily trading volume is also up by 22% surging past $52 billion.