BREAKING: Evernorth's $214 Million XRP Buy Is 46% Underwater — Its Stock Has Crashed 68% From Its Peak
Evernorth, the Ripple-backed treasury company that now holds about 473 million XRP, has started its life on the Nasdaq deep in the red. XRP is trading near $1.37, and at that price the part of the treasury the company bought with real cash is sitting on a heavy paper loss.
The maths is simple and painful. Evernorth bought about 84.4 million XRP for roughly $214 million, at an average price near $2.54 per coin. At around $1.37 today, that same slice is worth only about $116 million — roughly 46% below what the company paid. Most of the rest of its 473 million XRP was contributed by Ripple and the deal sponsor, and the company also holds about $300 million in gross cash.
The stock has told the same story. Trading as XRPN, the shares had run up to a $53 peak on October 2 in a speculative rush before the merger closed. On debut day, October 12, the stock touched $19.39 but closed at $16.91 — about 68% below that peak. Heavy redemptions before the deal closed, with about 80% of eligible shares cashed out for roughly $195 million, have also left the public float very thin, which can make the price swing hard in both directions.
Management is trying to show this will not be a passive vault. On debut day Evernorth named Hugo Jeandesboz, a former co-chief investment officer at Coinbase Asset Management, as its new CIO. His job is to put the XRP to work through lending, liquidity provision and other yield strategies, so the company can grow the amount of XRP behind each share instead of only waiting for the price to recover.
For traders, XRPN is now effectively a leveraged bet on XRP itself, and it is not alone in pain: XRP ETF buyers are also reported to be sitting on about $230 million in paper losses. The level to watch is whether XRP can keep holding above the $1.35 area it touched on debut day, and Evernorth's Nasdaq bell ceremony set for October 14 could bring fresh volatility to both the stock and the coin.
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: Bitcoin.com News, CryptoWatch Daily, CoinDesk
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