June 12, 2025 – Shares of Trident Digital Tech Holdings (TDTH) nosedived nearly 40% in early Thursday trading, falling from around $0.45 in premarket hours to under $0.20, after the company revealed an ambitious $500 million financing initiative to create a corporate XRP Treasury.
The Singapore-based firm says it plans to acquire a substantial amount of XRP tokens as part of its long-term reserves strategy. According to the announcement, the tokens will be used in staking protocols to generate yield and to deepen the company’s involvement in the Ripple ecosystem.
Strategic Shift Met with Investor Skepticism
Despite positioning the move as a bold step into blockchain-native corporate finance, investor reaction was sharply negative. The company’s stock plummeted within hours of the announcement, erasing a significant portion of its market capitalization.
Trident’s proposed initiative will be funded through a mix of equity issuance, structured financing, and strategic placements. The firm also appointed Chaince Securities LLC as its strategic advisor to guide the project.
CEO Soon Huat Lim defended the initiative, stating:
“We see digital assets as key enablers in the evolution of the global financial landscape. This initiative reflects our belief in the transformative potential of blockchain technology.”
However, the market didn’t seem to share Lim’s optimism. The steep sell-off suggests that investors are wary of the risks tied to such a sizable commitment to a single digital asset especially one like XRP, which has faced its own regulatory and market volatility over the years.
XRP Treasury Rollout Expected in Late 2025
According to Trident, the XRP Treasury is expected to launch in H2 2025, pending regulatory approvals and broader market conditions. Discussions are reportedly underway with crypto foundations and institutional partners to negotiate favorable terms for acquiring XRP and developing related infrastructure.
While the move could potentially mark a significant evolution in corporate finance blending traditional treasury management with blockchain strategy it’s clear that shareholders were caught off guard by the magnitude and risk profile of the plan.
Final Take
The dramatic plunge in TDTH’s stock reflects investor uncertainty over its $500 million crypto treasury strategy. As the firm ventures deeper into the Ripple ecosystem and pushes for a blockchain-native financial structure, market observers will be watching closely to see whether this gamble leads to long-term innovation short-term financial strain.
