XRP treasury SPAC drops 50% in a day ahead of Evernorth’s Nasdaq debut

Evernorth has postponed its Nasdaq debut after the special purpose acquisition company (SPAC) tasked with taking the XRP treasury firm public suffered a 50% single-day collapse in share value.

According to data compiled by StockAnalysis, Armada Acquisition Corp. II—currently trading under the ticker XRPN—finished Tuesday at $19.20. This marks a 50.3% drop from its $38.65 close the previous day. Just days prior, the shares hit a peak of $53 on Oct. 2, following a close of $10.58 on Sept. 28.

An Oct. 6 filing from Evernorth revealed that an administrative setback postponed the finalization of its merger with Armada from Oct. 7 to approximately Oct. 9. Consequently, trading for the newly combined entity on the Nasdaq is slated to launch around Oct. 12 instead of Oct. 8. Evernorth noted that this postponement is not anticipated to impact the overall closing.

As a result, investors are facing an extended wait period as a speculative buying wave in Armada stock begins to unwind right before the XRP treasury venture officially enters the public markets.

A near-quadrupling unwinds in days

The upward trajectory of XRPN intensified after shareholders of Armada gave the green light to the Evernorth merger on Sept. 30.

The equity closed at $23.43 on Oct. 1, leaped as high as $53 the following day, and concluded that session at $39.42. It held steady at $38.65 on Oct. 5 before dropping sharply to $19.20 on Tuesday.

Even following this halving in value, XRPN remained roughly 81% higher than its Sept. 28 closing price, demonstrating how aggressively investors had bid up the asset ahead of the business combination.

Part of this heightened volatility may stem from a shrinking supply of Armada shares available to market participants seeking a stake prior to Evernorth becoming the official listed entity.

Per its quarterly filing with the Securities and Exchange Commission (SEC), Armada reported 23 million shares subject to redemption as of June 30, supported by $241.2 million held in trust—translating to about $10.49 per share.

Later on, Evernorth stated that only around $48 million of these trust funds are projected to stay with the merged corporation upon completion of the deal.

Using Armada’s June redemption price as a general benchmark, that residual sum corresponds to roughly 4.6 million shares left from the original 23 million redeemable units, suggesting redemption levels nearing 80%.

Because the organizations have not yet published the final tally of redemptions, this metric remains an estimate rather than the definitive post-merger public float.

Significant SPAC redemptions can leave a very limited supply of equities available for open-market trading. This dynamic can magnify price fluctuations when participants rush into a transaction, leading to an equally drastic correction once buying interest cools.

Consequently, the price swings in XRPN present an imperfect gauge of what the fully merged Evernorth will ultimately command in valuation. Market participants are currently pricing a SPAC in the process of finalizing a deal, rather than the conclusive capital framework of the XRP treasury enterprise.

Evernorth’s 473 million XRP bet moves closer to market

Even so, the underlying transaction will establish what Evernorth describes as the largest publicly traded corporation centered primarily on an XRP treasury.

Upon closing, the enterprise anticipates holding approximately 473 million XRP, alongside nearly $300 million in gross cash proceeds from the deal. This figure encompasses $225 million via private placements, $30 million derived from convertible-note funding, and roughly $48 million remaining in Armada’s trust prior to transaction expenses.

Backers of the transaction feature prominent names such as Ripple, SBI Group, Arrington Capital, Pantera Capital, Kraken, and GSR, as outlined in Evernorth’s Oct. 1 press release.

Evernorth is marketing the vehicle as far more than just a public wrapper surrounding an XRP reserve. Chief Executive Asheesh Birla explained that the firm intends to deploy capital throughout the XRP ecosystem with the goal of expanding XRP exposure per share over time.

This strategy forms a core element of Evernorth’s pitch to prospective investors ahead of the merger. Tuesday’s downward correction underscores the inherent dangers of attaching such a valuation premium to a thinly traded acquisition vehicle before market participants know precisely how many shares will remain in circulation post-closing.

As a result, upcoming disclosures may carry greater significance than the two-day administrative setback itself.

Once the transaction officially concludes, Evernorth is expected to deliver clearer insights regarding the final redemption tally, the cash secured from Armada’s trust, and the combined entity’s share architecture. Furthermore, the merger will bring additional potential drivers of equity supply—such as Armada’s outstanding warrants—into clearer view.

These figures will supply investors with a more solid foundation to evaluate whether XRPN’s remaining valuation premium stems from the intrinsic worth of Evernorth’s XRP strategy or simply the temporary scarcity of available shares prior to deal completion.

Frequently Asked Questions

• Why did Evernorth delay its Nasdaq debut? Evernorth delayed its public market launch due to an administrative setback that pushed the completion of its merger with Armada Acquisition Corp. II from Oct. 7 to around Oct. 9.
• What happened to Armada Acquisition Corp. II’s stock price? Armada’s shares (trading under XRPN) dropped 50.3% in a single day, closing at $19.20 after previously surging as high as $53 following a peak in speculative interest.
• How much XRP does Evernorth expect to hold? The company anticipates holding approximately 473 million XRP at the time the transaction closes.
• Who are some of the key financial backers of the transaction? Backers include Ripple, SBI Group, Arrington Capital, Pantera Capital, Kraken, and GSR.