Evernorth takes a page from Michael Saylor’s Bitcoin playbook with new $80 million XRP funding plan
Evernorth Holdings has entered into an agreement with Cantor Fitzgerald to raise approximately $80 million through equity financing, primarily to expand its XRP holdings.
The Nasdaq-listed company signed a stock purchase agreement with CF Principal Investments, a Cantor Fitzgerald affiliate, on Oct. 23. Under the terms, Evernorth can sell up to 5.22 million newly issued Class A common shares over approximately 14 months, potentially raising $80.7 million in gross proceeds based on its Oct. 22 closing share price of $15.46.
A substantial portion of the funds will be allocated toward acquiring additional XRP, while the remaining capital will be used for working capital, corporate expenses, and activities within the XRP ecosystem. The company must first secure SEC effectiveness for its resale registration statement before the financing can begin.
Financing Structure
Evernorth can direct Cantor to purchase shares periodically at 97% of their volume-weighted average trading price, allowing the company to access capital in installments based on market conditions. The purchases are subject to restrictions, including a general limit of 20% of trading volume and a 4.99% ownership threshold for Cantor.
The company must also pay an initial commitment fee of approximately $522,000, which could increase to $1 million under certain conditions. The final amount raised will depend on Evernorth's share price, trading liquidity, and the volume of equity it ultimately issues.
Additional Funding Options
This agreement builds on another SEC filing in which Evernorth registered the potential issuance of nearly 11.5 million Class A shares through outstanding public warrants. Those warrants, issued by the special purpose acquisition company behind Evernorth's public listing, allow holders to buy shares at $11.50 each.
If exercised in full for cash, they could generate approximately $132.2 million for Evernorth, providing another potential source of capital. Unlike the share-sale arrangement, warrant proceeds depend on investors voluntarily exercising their existing rights.
Strategic Direction
Evernorth intends to raise additional capital when its stock trades at a premium to the net asset value of its XRP holdings, creating opportunities to acquire more tokens while seeking to increase the underlying asset value attributable to each share. This strategy mirrors how other digital asset treasury companies have operated.
The company's pending Cantor facility and outstanding warrants could finance further XRP purchases, with the scale of those acquisitions ultimately determined by how much equity capital Evernorth can secure through these arrangements.
Related
