KEY POINTS
- Investors exercised 3,073,366 warrants at $11.50 per share between Oct. 12 and Nov. 9, raising $35.3 million.
- Evernorth has not disclosed any XRP purchases funded by the proceeds, and its share count now totals about 58.4 million.
- About 8.67 million warrants remain outstanding, and a Cantor Fitzgerald facility allows sales of up to 5.22 million more Class A shares.
Evernorth, a Nasdaq-listed company backed by Ripple, raised $35.3 million in gross proceeds through warrant exercises, CryptoSlate reported. The money adds to the capital available for its XRP treasury strategy, but it also enlarges the company's share count.
A regulatory filing dated Nov. 13 shows that investors exercised 3,073,366 warrants between Oct. 12 and Nov. 9. Each was exercised at $11.50 per share, and the company issued an equal number of new Class A shares in return.
At an XRP price of about $0.99, the proceeds could in theory purchase roughly 35.7 million tokens. Evernorth has not disclosed any acquisitions financed with the funds, so the actual use of the money remains unclear.
The company already holds a large position. In October it said its treasury contained about 473 million XRP, which places it among the biggest publicly traded institutional holders of the asset. It plans to add more tokens and to deploy part of its holdings through institutional investment and yield strategies involving Ripple, Kraken, Coinbase and BitGo.
The complication lies in how Evernorth tracks its results. One of its measures is XRP per share, which divides the tokens attributable to the listed parent company by the outstanding Class A and Class C shares. Larger total holdings do not automatically raise that figure if the share base grows at the same time.
As of Nov. 9, Evernorth reported about 27 million Class A shares and 31.4 million Class C shares outstanding, a combined 58.4 million. Future token purchases would therefore need to add enough XRP to offset the extra shares if management wants that ratio to improve.
More dilution is possible. The filing shows roughly 8.67 million warrants still outstanding, and exercising all of them for cash at $11.50 would bring in another $99.7 million. In October, Evernorth also arranged an equity facility with Cantor Fitzgerald that lets it sell up to 5.22 million Class A shares, generally at 97% of the applicable volume-weighted average price.
According to CryptoSlate, the effect on shareholders will depend on how the capital is used. Spending it on XRP could lift XRP per share if treasury growth outpaces dilution, while holding the cash for operating costs or issuing shares without enough token accumulation could weaken the measure.
