Crypto investor and trader Cheeky Crypto has outlined a potential risk for XRP holders as Evernorth prepares to manage its 473 million XRP treasury. The company acquired some of its tokens at an average price of $2.54, well above XRP’s quoted price of $1.31 in the video.
However, the investor’s analysis suggests that the difference between these prices is not the main concern. Evernorth’s debt obligations, operating expenses and plans to generate returns from its holdings could determine whether it eventually sells XRP.
Evernorth’s XRP Holdings Have Different Cost Bases
In the video posted alongside his tweet, Cheeky Crypto explained that Evernorth holds approximately 473 million XRP, but the tokens came from different sources and carry different accounting values.
The company purchased approximately 84 million XRP with cash at an average price of $2.54. At $1.31 per token, that portion of its holdings would be worth about 48% less than its original purchase cost.
Another 346 million XRP came primarily from investors who contributed tokens rather than cash. Cheeky Crypto put the average acquisition cost for this portion at approximately $2.44 per XRP. Evernorth had recorded about $498 million in write-downs by the end of June, leaving the accounting value of this portion near $1.01 per token.
The remaining 127 million XRP came from Ripple and entered Evernorth’s operating company under a transfer arrangement involving entities under common control. The company’s accounting records carry these tokens at a value of zero, which does not represent their market value.
Cheeky Crypto stressed that Evernorth’s losses do not automatically require it to sell. The company’s filing does, however, permit sales under certain circumstances.
A major XRP holder has a $2.54 problem.
Evernorth paid ~$2.54 for its cash-bought $XRP.
At $1.31, that's roughly 48% lower.
Its own filing says it may sell XRP.
Watch 3:59.
Is this a risk for holders or are investors misunderstanding the strategy?
00:00 Evernorth paid… pic.twitter.com/zk6imFAxKy
— Cheeky Crypto (@CheekyCrypto) October 18, 2026
Selling XRP Is Part of Evernorth’s Strategy
According to the video, Evernorth’s filing allows the company to sell XRP for corporate expenses, strategic opportunities and liquidity needs. It can also use its holdings as collateral for secured financing.
The company plans to pursue additional strategies, including institutional lending, covered-call options, basis trades and decentralized finance activities involving XRP and RLUSD pools. Its filing excludes staking.
Evernorth has named Ripple, Kraken, Coinbase and BitGo as its initial execution partners. The company intends to begin deploying its treasury through institutional strategies in the fourth quarter of 2026, although it has not disclosed the amounts involved or a detailed schedule.
Covered calls present another potential source of selling pressure. Cheeky Crypto explained that these contracts allow Evernorth to collect premiums in exchange for agreeing to sell XRP at predetermined prices. If the market rises above those prices, the company may have to deliver the tokens at the agreed levels, limiting its gains on that portion of its holdings.
Debt Could Create a More Significant Risk
Cheeky Crypto identified Evernorth’s $30 million convertible-note agreement as a key factor to monitor. Beginning October 12, 2027, the lender can choose to convert the notes into shares, receive cash or use a combination of both. The filing indicates that the cash obligation could reach approximately $120 million.
If Evernorth must raise cash to meet its obligations, it may need to sell XRP. Earlier defaults, operating expenses and the absence of reported revenue could also create financial pressure.
However, Cheeky Crypto noted that the lender might prefer shares if their market value exceeds the conversion price. Potential proceeds from public warrants could also provide additional funding.
What XRP Holders Should Watch
The investor concluded that Evernorth faces no immediate requirement to sell simply because XRP trades below its acquisition cost. Future disclosures about its holdings, lending activities, options positions and financial obligations will provide clearer evidence of its strategy.
Although a substantial sale could affect market supply, Cheeky Crypto noted that Evernorth’s holdings represent only a portion of circulating XRP. The central question is whether the company can meet its financial obligations while managing its treasury without selling significant amounts of XRP into the market.
Disclaimer: This content is meant to inform and should not be considered financial advice. The views expressed in this article may include the author’s personal opinions and do not represent Times Tabloid’s opinion. Readers are advised to conduct thorough research before making any investment decisions. Any action taken by the reader is strictly at their own risk. Times Tabloid is not responsible for any financial losses.
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