Source: Sharecast
The AIM-traded digital finance platform said the tokens represent approximately 30% of the total XTP token supply, with the token’s fully diluted market capitalisation currently around $5.9m.
Tap said the acquisition strengthened its digital asset treasury, which also includes 6.14 Bitcoin, and would enhance integration between the Tap platform and the XTP ecosystem.
XTP has been available for trading on the Tap platform since its launch in 2020 and was widely used within the company’s ecosystem.
Tap said more than 32,850 users on the platform currently hold an XTP balance.
The token is used for fee discounts when users choose to pay trading fees in XTP and offers cashback rewards of up to 8% on card spending under an existing commercial agreement between Tap Group and Tap N Go announced in July 2024.
Tap Global said the newly-acquired tokens would be used to support a range of growth initiatives, including cashback rewards, user acquisition incentives, trading volume promotions and referral programmes.
It also intended to retain a portion of the tokens as a strategic reserve to support long-term ecosystem development and potential partnerships.
“Acquiring three billion XTP tokens valued at $1.8m at no cost to Tap Group is a great deal for the company and its shareholders,” said chief executive Arsen Torosian.
“This acquisition gives us a powerful strategic asset that we can deploy to accelerate user growth, drive trading volumes, and deepen engagement across our platform.
“As the owner of Tap N Go, and as Tap Group's largest shareholder, I believe we can create more value for both Tap Group shareholders and XTP token holders through this transaction and alignment.
“XTP has always been deeply intertwined with Tap's platform, and this acquisition cements that relationship.
“Our aim is to build the biggest crypto bank, and this is another milestone on that journey.”
The transaction constituted a related party transaction under the AIM rules as Tap N Go is controlled by Torosian, who is also Tap Group’s chief executive and co-founder.
The company said its independent directors, having consulted with nominated adviser Spark Advisory Partners, considered the terms of the acquisition to be fair and reasonable for shareholders.
At 1136 GMT, shares in Tap Global Group were up 21.74% at 1.4p.
Reporting by Josh White for Sharecast.com.
