Ripple-backed Evernorth has registered up to 73.7 million shares for potential resale, raising concerns about additional selling pressure on its stock. Major investors named in the SEC filing include Ripple Labs, Arrington XRP Capital, SBI Holdings, and a trust linked to Ripple co-founder Chris Larsen.
The registration covers nearly three times the company’s outstanding Class A shares, although not all registered securities are immediately available for sale. Several key shareholders remain subject to six-month lock-up agreements, generally preventing transfers until April 2027.
Ripple, Arrington and SBI Among Major Shareholders in SEC Filing
The SEC filing identifies several prominent investors who could eventually sell registered shares, including some of the most recognizable names in the XRP ecosystem.
Arrington XRP Capital Fund accounts for approximately 33.82 million shares, making it the largest shareholder listed in the registration. Ripple Labs follows with approximately 18.14 million shares.
Four entities connected to Japan’s SBI Holdings collectively account for around 11.79 million shares. Meanwhile, the Larsen Lam Children’s Remainder Trust, associated with Ripple co-founder Chris Larsen, has registered approximately 7.15 million shares.
Other participants include Pantera Capital’s DAT Opportunities fund, cryptocurrency exchange Kraken’s parent company Payward, GSR Markets Switzerland, and Japanese gaming company gumi.
Evernorth says the filing fulfills existing contractual obligations and does not indicate that investors intend to sell their holdings. Ripple-backed Evernorth is facing another challenge following its difficult stock market debut, as a new regulatory filing has raised concerns about a potentially significant increase in the number of shares entering the market.
Evernorth, which trades on Nasdaq under the ticker XRPN, initially reached $19.39 on its October 12 debut. However, the shares subsequently declined to a post-merger closing low of $11.70 on November 2, highlighting the pressure surrounding the company’s public-market performance.
April 2027 Lock-Up Expiration Could Become a Key Milestone
Despite the sizeable registration, several major shareholders face contractual restrictions that limit their ability to transfer shares.
Ripple, the Arrington-controlled sponsor and the Larsen-associated contributor entity are subject to six-month lock-up agreements, generally extending until April 9, 2027, although certain exceptions apply.
Evernorth disclosed that approximately 7.04 million issued Class A shares, equivalent to 29.8% of the outstanding Class A stock at the merger closing, were covered by these restrictions.
The company also clarified that the registration was submitted to meet obligations established through agreements connected to its business combination. It should therefore not be interpreted as confirmation that the named investors plan to sell their holdings.
Nevertheless, the possibility of a substantial increase in available shares could weigh on market sentiment. Evernorth itself acknowledged in its risk disclosures that significant shareholder sales, or even expectations of future selling, could put downward pressure on its stock price.
The company entered public markets with about 473 million XRP in its treasury, pursuing a strategy to expand its digital asset reserves and increase the amount of XRP held per share.
For investors, the coming months will be important in determining whether Evernorth can restore confidence following its disappointing debut. While the April 2027 lock-up expiration remains a potential supply catalyst, the effectiveness of the registration and the actual decisions of individual shareholders will ultimately determine how much additional selling pressure reaches the market.
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