The U.S. Securities and Exchange Commission (SEC) has approved a prospectus allowing Ripple-backed Evernorth Holdings to issue shares from warrant exercises, with proceeds potentially directed toward growing its XRP treasury.
Warrant Details and Potential Proceeds
According to a notice of effectiveness, Evernorth can issue up to 11,499,992 shares of XRPN Class A common stock upon the cash exercise of public warrants at $11.50 per share. If all warrants are exercised for cash, the company could receive approximately $132.25 million in gross proceeds. Evernorth will only receive proceeds from cash exercises of the warrants, not from other sales of the underlying shares under this prospectus.
Market Reaction and Trading
In premarket trading, XRPN stock traded near $15.16, while the warrants (XRPNW) traded around $4. XRP jumped more than 5% in the last 24 hours amid the news, trading around $1.35. The 24-hour high was $1.37, with trading volume surging more than 30%.
Background and Strategy
Evernorth Holdings completed its merger with Armada Acquisition Corp II earlier this month and began trading on Nasdaq under the ticker XRPN. At closing, the company held almost 473 million XRP. Investors include Arrington Capital, SBI Group, Ripple, Pantera Capital, Kraken, and GSR. CEO Asheesh Birla, a former Ripple executive, described the public listing as offering regulated exposure to XRP.
The company has previously outlined plans to raise more capital through share issuance and other means to purchase more XRP, actively manage its holdings, seek yield strategies on the XRP Ledger, and expand within the XRP ecosystem. Evernorth has also signaled plans to begin deploying portions of its existing XRP treasury in the fourth quarter of 2026 through institutional partners including Ripple, Kraken, Coinbase, and BitGo.
Management retains broad approval over the use of any net proceeds for general corporate purposes. Actual capital raised will depend on the number of warrants exercised, and dilution of existing shareholders is a potential outcome if exercises occur at scale.
