Evernorth Plans $80 Million Funding Round to Expand XRP Treasury

Evernorth to raise $80 million for XRP purchases

Evernorth Holdings, a company backed by Ripple, has entered into an agreement to raise approximately $80 million through the sale of its shares. The firm plans to use most of this money to buy XRP, a digital currency used for fast global payments.

This move allows the Nasdaq-listed company to build a larger treasury, which is a collection of assets held by a firm. The strategy involves selling company equity, or shares of ownership, to investors to fund the purchase of digital assets.

Primary details of the funding plan

• Evernorth may sell up to 5.22 million newly issued shares over 14 months.
• The deal is with CF Principal Investments, an affiliate of Cantor Fitzgerald.
• Net proceeds are estimated at $78.3 million after fees.
• The company may also raise $132.2 million from separate public warrants.

SEC filing outlines stock purchase agreement

According to documents filed with the Securities and Exchange Commission (SEC), the government agency that regulates markets, Evernorth signed the agreement on October 23. The company can choose when to sell shares to Cantor Fitzgerald at 97% of their average market price.

Evernorth intends to spend the capital on more XRP and general corporate expenses. It also plans to support the broader XRP ecosystem, which includes the various products and services built around the digital token.

Adopting the Bitcoin playbook for XRP

This plan follows a model created by Michael Saylor’s company, Strategy. That firm frequently sells its own shares to buy Bitcoin. Evernorth is attempting a similar approach by using its status as a public company to gain capital for XRP purchases.

The company stated it wants to raise money when its stock price is higher than the value of the XRP it already owns. This is intended to increase the amount of digital assets linked to each share of the company.

Current status of the financing

Several facts regarding the deal are confirmed. Evernorth is a Ripple-backed company listed on the Nasdaq stock exchange. It has officially signed the stock purchase agreement with Cantor Fitzgerald. The firm has also confirmed its intent to use the money for XRP acquisitions.

Factors affecting the final funding amount

While the agreement is signed, the funding has not yet started. Evernorth must first wait for the SEC to approve a specific registration statement. The final amount of money raised is not fixed. It will depend on Evernorth’s share price and how many investors are trading the stock during the 14-month period.

Sources

• CryptoSlate