Trident Digital Tech Holdings saw its stock collapse nearly 40% in early trading Thursday, falling from around $0.45 in premarket to under $0.20, after the company announced a $500 million financing initiative to create a corporate XRP Treasury.

The Singapore-based firm plans to acquire XRP (XRP) tokens as long-term reserves, use them in staking strategies to earn yield, and deepen engagement in the Ripple ecosystem. 

Trident also named Chaince Securities LLC as its strategic advisor for the effort.

The initiative would be funded through equity issuance, structured financing, and strategic placements, the company said.

Discussions are reportedly underway with crypto foundations and institutional partners to secure favorable acquisition terms for XRP and related infrastructure. While Trident positioned the move as a step toward pioneering blockchain-native corporate finance, so far, the investor response has been negative. 

TDTH’s plunge

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 XRP Treasury is expected to roll out in the second half of 2025, pending regulatory approvals and market conditions.

“We see digital assets as key enablers in the evolution of the global financial landscape,” said CEO Soon Huat Lim. “This initiative reflects our belief in the transformative potential of blockchain technology.”