An XRP treasury SPAC surges nearly 300% ahead of Evernorth merger
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
Shares of Armada Acquisition Corp. II, the SPAC taking XRP treasury firm Evernorth public, surged about 273% last week ahead of their expected merger closing on October 7, 2026. Evernorth is set to hold around 473 million XRP tokens worth roughly $714 million at current prices, alongside approximately $300 million in cash proceeds. About 80% of Armada’s trust funds are expected to be redeemed and returned to shareholders, potentially reducing the publicly traded shares and contributing to high price volatility.
Why it matters
The merger will introduce hundreds of millions of XRP tokens and new shareholders to the publicly traded entity. The high redemption rate of trust funds might lower the float of shares available, intensifying price movements. The source implies the deal's success and market reception could influence perceptions around cryptocurrency treasury companies going public, a sector that has seen mixed post-merger performance.
Key context
Armada Acquisition Corp. II is a special purpose acquisition company (SPAC) that raises funds, holds them in trust, and merges with private businesses, allowing shareholders to redeem their shares before the merger. Evernorth has invested significantly in XRP, with previous purchases now valued less than their acquisition price. Prior XRP treasury mergers in the broader crypto market experienced share price declines post-listing, indicating potential challenges for Evernorth.
Key numbers and entities
Armada Acquisition Corp. II (ticker XRPN), Evernorth (XRP treasury firm), approximately 473 million XRP tokens valued at about $714 million, $214.1 million spent acquiring 84.4 million XRP, current value of those at roughly $127 million, $241.2 million held in Armada's trust as of June, about $48 million expected to remain for the transaction after redemptions, and a combined approximately $300 million gross cash proceeds including $225 million from private placements and $30 million in convertible notes.
What remains unclear
The exact number of shares redeemed and the final distribution of shares post-merger are not provided. The source does not detail how Evernorth plans to use the raised cash proceeds or address the devaluation of previously purchased XRP. It also does not clarify how the merger might impact Evernorth’s longer-term business strategy or market positioning.