ZK International Launches Unique Financing Strategy as Public Market Gateway for Crypto's Viral Movement -- Targeting Billion Dollar XRP Community via ZKIN Warrants

Rhea-AI Summary

ZK International (NASDAQ: ZKIN) has announced a groundbreaking financing strategy targeting the XRP cryptocurrency community. The company plans to raise up to $1 Billion by offering ZKIN warrants that can be exercised using XRP, Ripple's cryptocurrency with a market cap of approximately $130 Billion. This innovative approach would enable XRP holders to gain exposure to a Nasdaq-listed equity without converting to fiat currency.

The company will appoint a Crypto Integration Facilitator and implement strict governance standards for this initiative. The strategy aims to bridge traditional public markets with decentralized finance, targeting XRP's network of over 5 million active wallets. However, ZKIN notes there's no assurance the warrants will become exercisable or that received XRP will maintain its value or liquidity.

Positive

• Innovative financing strategy targeting XRP's large $130B market cap and 5M+ active wallets
• Potential to raise up to $1 Billion in capital through warrant offerings
• Creates bridge between traditional public markets and crypto without fiat conversion
• Access to large cryptocurrency investor base through XRP integration

Negative

• No assurance warrants will become exercisable
• Uncertainty about XRP value retention and liquidity
• Strategy still subject to legal review and board approval
• Risks associated with cryptocurrency market volatility

Insights

Blockchain Financial Strategist

ZKIN announces an ambitious but speculative plan to raise up to $1B by offering warrants exercisable with XRP cryptocurrency instead of cash.

ZK International has unveiled a highly experimental financing strategy aimed at raising up to $1 billion through warrants that can be exercised using Ripple's XRP cryptocurrency instead of traditional fiat currency. This represents a novel attempt to bridge cryptocurrency markets with traditional equity markets, specifically targeting the XRP community which holds assets worth approximately $130 billion across over 5 million active wallets.

The mechanics of this plan deserve scrutiny. The company proposes allowing XRP holders to exercise warrants to gain exposure to ZKIN stock without converting their cryptocurrency to fiat currency first. This would create a direct bridge between a digital asset (XRP) and a Nasdaq-listed security (ZKIN).

Importantly, this announcement contains significant contingencies and qualifiers. The plan is still subject to legal review and board approval, and ZKIN plans to appoint a "Crypto Integration Facilitator" to handle implementation. The company also explicitly acknowledges there's no assurance the warrants will become exercisable or that any XRP received would retain value or have sufficient liquidity.

While innovative, this approach raises complex regulatory and implementation questions. The press release reflects aspirational planning rather than an active offering. The $1 billion target appears highly ambitious given ZKIN's current market positioning. The company is attempting to position itself as a gateway between decentralized finance and traditional markets, but the practical execution of such a mechanism would face significant regulatory, custodial, and liquidity challenges not fully addressed in this announcement.

WENZHOU, China, May 21, 2025 /PRNewswire/ -- ZK International Group Co., Ltd. (Nasdaq: ZKIN) ("ZK International", "ZKIN" or the "Company") is pleased to announce the Company and its wholly owned subsidiary, xSigma Corporation, will jointly implement a unique financing strategy, that is subject to be reviewed by the Company's legal counsel and approved by the Company's board of directors, aimed at engaging the global XRP community and bridging the cryptocurrency market and stock capital market.

ZKIN plans to raise capital up to $1 Billion from holders of Ripple's XRP by offering ZKIN warrants that can be exercised using XRP. This novel approach would allow holders of Ripple's XRP, one of the most widely held digital assets with a market cap of approximately $130 Billion, to gain exposure to a Nasdaq-listed equity without converting their XRP into fiat.

With over 5 million active wallets and broad institutional interest, XRP has become one of the most adopted and liquid digital assets globally. ZKIN is uniquely positioned to tap into this network by extending warrant-based access to XRP holders, creating a bridge between traditional public markets and decentralized finance.

To support the successful execution of this initiative, ZK International plans to sign a strategic consulting agreement and appoint an experienced Crypto Integration Facilitator. Under this agreement, the Crypto Integration Facilitator will perform services that may include, but are not limited to, research, feasibility analysis, compliance, and design of blockchain and digital asset initiatives.

This model reflects the growing alignment between blockchain utility and public market innovation, and is intended to allow ZK International to serve as a gateway for both retail and institutional investors to participate in. With a view to compliance and safeguarding all processes, the Company is in the process of implementing strict governance and oversight standards, including transparency in warrant issuance, regulatory disclosures, and custodial protocols.

"The market is assigning premium valuations to companies innovating with digital asset access models — especially those engaging real communities with real-world use cases," said Jiancong Huang, Chairman of ZKIN. "This plan is not designed to be a speculative play — it's a purpose-built platform to bring decentralized finance to Wall Street through a compliant, creative mechanisms like XRP-denominated warrant access."

With this initiative, the company now combines innovative public market participation tools with the scale of the crypto economy — offering an equity-based opportunity for XRP supporters and beyond. The warrants, if exercised, would provide investment exposure to, and the exercise consideration would make funds available to ZKIN's overall operations.  There can be no assurance that conditions will be such that the warrants will become exercisable or that XRP received by ZKIN will be held, will retain its value if held, or have sufficient liquidity to be sold or used by ZKIN.

About ZK International Group Co., Ltd.

ZK International Group Co., Ltd. is a China-based engineering company building and investing in innovative technologies for the modern world. With a focus on designing and implementing next-generation solutions through industrial, environmental and software engineering, ZKIN owns 28 patents, 21 trademarks, 2 Technical Achievement Awards, and 10 National and Industry Standard Awards.  

ZKIN's core business is to engineer and manufacture patented high-performance stainless steel and carbon steel pipe products that effectively deliver high quality, highly-sustainable and environmentally sound drinkable water to the Chinese, Asia and European markets.  ZK International is Quality Management System Certified (ISO9001), Environmental Management System Certified (ISO1401), and a National Industrial Stainless Steel Production Licensee.  It has supplied stainless steel pipelines for over 2,000 projects, which include the Beijing National Airport, the "Water Cube" and "Bird's Nest", which were venues for the 2008 Beijing Olympics.  ZK International is preparing to capitalize on the $850 Billion commitment made by the Chinese Government to improve the quality of water, which has been stated to be 70% unfit for human contact.  

Safe Harbor Statement 

This news release contains forward-looking statements within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E of the Securities Exchange Act of 1934, as amended, and as defined in the U.S. Private Securities Litigation Reform Act of 1995. Without limiting the generality of the foregoing, words such as "may," "will," "expect," "believe," "anticipate," "intend," "could," "estimate" or "continue" or the negative or other variations thereof or comparable terminology are intended to identify forward-looking statements. In addition, any statements that refer to expectations, projections or other characterizations of future events or circumstances are forward-looking statements. These forward-looking statements are not guarantees of future performance and are subject to certain risks, uncertainties and assumptions that are difficult to predict and many of which are beyond the control of ZK International.  Actual results may differ from those projected in the forward-looking statements due to risks and uncertainties, as well as other risk factors that are included in the Company's filings with the U.S. Securities and Exchange Commission. Although ZK International believes that the assumptions underlying the forward-looking statements are reasonable, any of the assumptions could prove inaccurate and, therefore, there can be no assurance that the results contemplated in forward-looking statements will be realized.  In light of the significant uncertainties inherent in the forward-looking information included herein, the inclusion of such information should not be regarded as a representation by ZK International or any other person that their objectives or plans will be achieved. ZK International does not undertake any obligation to revise the forward-looking statements contained herein to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

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SOURCE ZK International Group Co., Ltd.

FAQ

What is ZKIN's new financing strategy involving XRP?

ZKIN plans to raise up to $1 Billion by offering warrants that can be exercised using XRP cryptocurrency, allowing XRP holders to gain exposure to ZKIN's Nasdaq-listed equity without converting to fiat currency.

How much capital does ZKIN aim to raise through XRP warrants?

ZKIN aims to raise up to $1 Billion through its warrant offering to XRP holders.

What are the risks of ZKIN's XRP warrant strategy?

Key risks include uncertainty about warrant exercisability, potential XRP value fluctuations, pending legal review and board approval, and general cryptocurrency market volatility.

How will ZKIN implement its XRP warrant strategy?

ZKIN will appoint a Crypto Integration Facilitator and implement strict governance standards, including transparency in warrant issuance, regulatory disclosures, and custodial protocols.

What is the target market for ZKIN's XRP warrants?

The target market includes XRP's community of over 5 million active wallets and institutional investors, representing access to approximately $130 Billion in market cap.