Trident Digital Tech Holdings plummets following announcement of $500 million fundraise for an XRP treasury

Singapore-based Trident Digital Tech Holdings is the latest player to take up the XRP-focused treasury playbook, joining Chinese firm Webus and energy company VivoPower.

On Thursday, the firm announced an initiative to raise about $500 million to create a large-scale corporate treasury composed of XRP, the fourth-largest cryptocurrency by market capitalization, at roughly $132 billion. 

Shares of Trident Digital Tech Holdings have dropped nearly 38% on the news.

“The initiative will focus on the acquisition of XRP tokens as long-term strategic reserves, the deployment of staking mechanisms to generate yield, and deep engagement within the Ripple ecosystem,” the press release said, adding that the capital raise will be a combination of equity issuance, strategic placements, and structured financing instruments.

The price of XRP has dropped 3.4% in the last 24 hours, but has jumped over 350% in the past year.