Evernorth — one of the largest institutional holders of XRP — has lost nearly 47% of its value since its Nasdaq debut in October. A fresh filing discloses 73.7 million shares that owners may resell, adding pressure on the stock price.

The situation is becoming a serious test of investor confidence in a company whose business model is built entirely around accumulating XRP. Evernorth trades under the ticker XRPN and holds about 473 million XRP on its balance sheet. Its key strategy is to increase the amount of XRP per share.

Plunge from peak to trough

Evernorth went public on October 12. The shares peaked at $19.39, but by November 5 trading had closed at a low of $10.05. This reversal has completely extinguished the enthusiasm that accompanied the start of trading.

It is also worth noting that investors bought up about 80% of the SPAC's public shares ahead of the merger closing on October 9. According to the preliminary S-1 form dated October 30, 73.7 million Class A ordinary shares have been registered for 21 investors — nearly three times the current Class A shares outstanding.

Who can sell Evernorth shares and when

The list of major investors ready to sell includes:

  • Arrington XRP Capital Fund: about 33.82 million shares;
  • Ripple Labs: approximately 18.14 million shares;
  • Four SBI-affiliated entities: about 11.79 million shares in total;
  • Larsen Lam Children's Remainder Trust: approximately 7.15 million shares, linked to Ripple co-founder Chris Larsen.

Among the smaller holders are Pantera, GSR, Kraken exchange parent company Payward, and gumi. However, the document does not confirm that any of them have already started selling or intend to do so. Evernorth will not receive proceeds from any of these resales.

Nevertheless, current selling restrictions provide some protection. Ripple has an agreed six-month lock-up that will end on April 9, 2027.

Cryptalist analysis: The Evernorth case demonstrates the structural vulnerability of public XRP treasury companies: the gap between the market price of the shares and the value of the underlying asset creates the risk of cascading resales when lock-ups expire. While the moratoriums remain in effect, the market gets a reprieve, but the very registration of 73.7 million shares already prices potential future supply into XRP — a factor that institutional participants will take into account when assessing the asset's medium-term trajectory.