Trident Digital Shares Plunge 38% Following $500M XRP Treasury Announcement

Singapore-based Trident Digital Tech Holdings (Nasdaq: TDTH) saw its stock price crater by nearly 38% on Thursday following the company's announcement of a $500 million initiative to establish one of the world's largest corporate XRP treasuries.

The stock, which traded at about $0.45 in the premarket following the announcement, rapidly dropped below $0.20, erasing a significant portion of its market value. The dramatic selloff highlights the mixed investor sentiment surrounding corporate cryptocurrency adoption strategies, particularly those focused on alternative digital assets beyond Bitcoin.

Ambitious Treasury Strategy Meets Market Reality

Trident's announcement positions the company at the forefront of a nascent but growing trend of corporate XRP adoption. The firm plans to raise capital through a combination of equity issuance, strategic placements, and structured financing instruments, with the initial rollout scheduled for the second half of 2025, the company said.

Trident appointed Chaince Securities LLC as its strategic advisor for the initiative, which will focus on acquiring XRP tokens as long-term strategic reserves, deploying staking mechanisms to generate yield, and engaging deeply within the Ripple ecosystem.

"We see digital assets as key enablers in the evolution of the global financial landscape," said Soon Huat Lim, Trident's founder, chairman, and CEO. The executive emphasized the company's commitment to demonstrating "how public companies can thoughtfully and responsibly participate in the ongoing development of decentralized finance."

Following the XRP Treasury Playbook

Trident joins major corporations like VivoPower, Wellgistics, and Webus International that are adopting XRP as a treasury asset, with over $471 million in allocations across various initiatives. This emerging corporate strategy represents a significant departure from the Bitcoin-focused treasury approaches popularized by companies like Strategy.

VivoPower recently announced a $121 million XRP-focused treasury strategy backed by Saudi Royal family investment, aiming to be the first public company with an XRP focus. Nasdaq-listed Worksport has also decided to buy both Bitcoin and XRP for its corporate treasury.

The appeal of XRP for corporate treasuries lies in its utility for fast, low-cost cross-border payments and Ripple's RLUSD integration, which companies believe will boost the token's long-term ecosystem value.

Market Skepticism and Execution Challenges

The sharp stock decline reflects several investor concerns about Trident's ambitious plan. The company's existing financial position raises questions about its ability to execute such a large-scale treasury initiative. Trident reported losses of $8.12 million in its most recent filing, representing a 70.1% increase from 2023.

Additionally, the company received a Nasdaq notification regarding minimum bid price requirements in May 2025, indicating ongoing compliance challenges that could complicate the proposed capital raising efforts.

The market's reaction suggests investors remain skeptical about the execution feasibility of a $500 million treasury initiative from a company with a current market capitalization of approximately $28.8 million, according to recent data.

Trident emphasized that its XRP treasury deployment remains subject to regulatory compliance and prevailing market conditions.

Despite the immediate market reaction, Trident's announcement represents another data point in the corporate cryptocurrency adoption landscape. The company has committed to providing ongoing updates on deployment milestones, governance frameworks, and reporting standards in alignment with public company disclosure practices.

However, the significant stock price decline underscores the challenges facing smaller public companies attempting to execute large-scale cryptocurrency treasury strategies, particularly those involving altcoins.