Evernorth has raised $35.3 million through warrant exercises, issuing over 3 million new shares to investors. The funds could potentially buy approximately 35.7 million XRP tokens at the current price of $0.99 per token, though no purchases have been confirmed. This influx of capital strengthens Evernorth's cryptocurrency treasury strategy but also introduces a challenge for shareholders.
The company disclosed in its Nov. 13 regulatory filing that investors exercised 3,073,366 warrants between Oct. 12 and Nov. 9, paying $11.50 per share. The transactions generated $35.3 million in gross proceeds and resulted in the issuance of an equivalent number of new Class A shares. Evernorth, backed by Ripple, plans to use the funds to expand its XRP holdings, but the increased share count raises questions about whether future XRP purchases will increase the tokens attributable to each share.
Evernorth measures its performance partly through XRP per share, calculated by dividing the tokens attributable to the publicly traded parent company by its outstanding Class A and Class C shares. As of Nov. 9, the company reported about 27 million Class A shares and 31.4 million Class C shares outstanding, for a combined total of 58.4 million. Future XRP purchases must generate enough additional token holdings to offset the expanded share base if management is to deliver growth in XRP per share.
The company has several avenues for raising more capital. Approximately 8.67 million warrants remain outstanding, and exercising all of them for cash at $11.50 would generate another $99.7 million in gross proceeds while creating an equivalent number of additional shares. Additionally, Evernorth secured an equity financing arrangement with Cantor Fitzgerald in October, allowing it to sell up to 5.22 million Class A shares at prices generally equivalent to 97% of the applicable volume-weighted average price.