Evernorth, a treasury company built around XRP, has filed to register 73.7 million shares for potential resale while its stock sits near a post-merger low. Ripple, Arrington XRP Capital and SBI affiliates are among the named holders. The filing is preliminary, and major shareholders face lock-ups until April 2027.
Evernorth filed to register 73.7 million shares for potential resale after its stock plunged following its Nasdaq debut. The Oct. 30 SEC filing names Ripple Labs, Arrington XRP Capital and affiliates of Japan's SBI Holdings among investors whose holdings could eventually enter the public market.
The registration arrives as the shares have lost nearly 40% of their value from their October 12 debut-day high of $19.39. XRPN then fell to a post-merger record closing low of $11.70 on Nov. 2 and recovered to $11.98 the following day.
Arrington and Ripple hold the largest registered stakes
According to the filing, Arrington XRP Capital Fund registered approximately 33.82 million shares, while Ripple Labs accounted for another 18.14 million. Four SBI-affiliated entities collectively registered approximately 11.79 million shares.
The Larsen Lam Children's Remainder Trust, associated with Ripple co-founder Chris Larsen, accounts for another 7.15 million. Pantera Capital's DAT Opportunities fund, GSR Markets Switzerland, Payward, the parent company of Kraken, and gumi also appear in the registration.
Lock-ups delay possible sales
Not all of the shares exist as tradable stock yet. Of the 73.7 million, approximately 19.1 million were already issued Class A stock, while 31.39 million could become available through conversions of Class C shares and another 22.95 million through exchanges or redemptions of company units.
Ripple, the Arrington-controlled sponsor and the Larsen-associated contributor entity entered lock-up agreements restricting transfers for six months, generally until April 9, 2027, subject to specified exceptions. The registration does not establish that any of these investors have sold shares or intend to sell their entire holdings.
Evernorth said it is registering the securities to satisfy commitments under agreements connected to its business combination. In its risk disclosures, it warned that large shareholder sales, or expectations of future selling, could depress its stock price.
Source: CryptoSlate
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