Ripple-Backed Evernorth Files to Resell 73.7 Million Shares After 40% Stock Decline

Ripple-backed Evernorth Holdings has registered 73.7 million shares for potential resale by existing investors following a sharp decline in its stock. The filing comes as XRPN shares have lost more than 40% from their October debut high.

Evernorth Registers 73.7 Million Shares for Resale

The SEC prospectus from Evernorth submitted on November 9th includes up to 73,688,162 Class A shares and 239,653 sponsor warrants. The registration enables shareholders who qualify to withdraw their investment gradually, as per the applicable restriction.

Some 19.1 million of the registered shares have already been issued, and 31.39 million require Class C conversions. An additional 22.95 million shares would be obtainable through the unit exchange process, in addition to shares that would be issued when warrants are exercised.

The filing names Arrington XRP Capital Fund, Ripple Labs, and SBI-related firms as the biggest possible sellers. Arrington’s volume was around 33.82 million shares, and Ripple’s volume was 18.14 million shares.

Evernorth said, however, it will “not receive any proceeds” from any resales by its shareholders. Registration does not imply that investors have sold shares, and some shareholders are still under six-month lock-up periods.

Evernorth Stock Extends Decline Following Nasdaq Debut

Evernorth closed at $7.96 on November 10, marking a 23.5% decline from Friday’s $10.41 close. The stock is now down some 59% from its peak on October 12 at $19.39.

The drop comes after Evernorth made its debut on the Nasdaq under the XRPN ticker. Trading began on October 12 after the company completed its merger with Armada Acquisition Corp. II.

In the meantime, the registered shares outnumber the company’s approximately 26.1 million outstanding Class A shares that were reported in October. Most registered shares, however, must be converted, exchanged, or warrants exercised to be available as Class A stock.

Ripple-Backed Evernorth Maintains XRP Treasury Strategy

Evernorth operates as a publicly traded XRP treasury company, with Ripple among its major financial backers. The company reported approximately 473 million XRP in holdings following its October business combination.

The company previously partnered with Ripple, Kraken, Coinbase, and BitGo to support institutional XRP investment strategies. These arrangements cover custody, trading, and planned treasury activities involving its digital asset holdings.

Evernorth also established a separate equity facility with Cantor, allowing potential issuance of up to 5.22 million additional shares. However, that financing arrangement remains separate from the newly effective shareholder resale registration.

The prospectus identifies XRP price volatility and concentrated cryptocurrency holdings among the company’s investment risks. Major shareholders also face transfer restrictions that generally extend into April 2027, subject to specified exceptions.