Evernorth secures $80M equity facility to expand XRP treasury

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Evernorth secures $80M equity facility to expand XRP treasury
PrimeXBT Editorial Team
Reviewed by PrimeXBT

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XRP

Evernorth Holdings, the Nasdaq-listed XRP treasury company, has secured a committed equity facility potentially worth approximately $80 million. The company plans to use the proceeds for more XRP, ecosystem development and corporate operations, but actual proceeds depend on the shares it sells.

Evernorth Holdings (NASDAQ: XRPN) secured a committed equity facility potentially worth approximately $80 million to fund additional XRP acquisitions and development across the XRP ecosystem. The company announced the deal on Monday.

Cantor Fitzgerald affiliate backs the facility

Evernorth entered into a common stock purchase agreement with CF Principal Investments LLC, an affiliate of Cantor Fitzgerald. It allows the company to sell up to 5,218,935 Class A common shares.

Based on XRPN's closing share price on October 22, the facility could generate approximately $80 million in gross proceeds if fully utilized. However, the agreement gives Evernorth access to capital as market conditions permit, rather than an immediate $80 million cash injection. Actual proceeds depend on the number of shares sold and their prices at issuance.

Evernorth said the capital could expand its XRP holdings, fund product development within the XRP ecosystem and support general corporate operations. The company also said it may pursue additional equity facilities and other financing arrangements to support its treasury strategy.

Facility follows the Nasdaq debut

The financing comes weeks after Evernorth completed its business combination with Armada Acquisition Corp. II on October 9. Its shares began trading on Nasdaq under the ticker XRPN on October 12.

The business combination and associated private placements had attracted more than $1 billion in capital and XRP contributions. Evernorth previously disclosed plans for a treasury holding approximately 473 million XRP.

On October 14, the company announced partnerships with Ripple, Kraken, Coinbase and BitGo to deploy its XRP holdings through institutional infrastructure. Evernorth aims to increase its XRP holdings per share through staking where available, institutional and decentralized finance yield strategies, and participation in the XRP ecosystem.

According to its SEC prospectus, Evernorth will decide when to sell shares under the facility based on market conditions and its capital requirements.

Source: Crypto Briefing

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