CoinDesk
Armada Acquisition Corp. II, the SPAC merging with XRP treasury firm Evernorth, jumped about 273% last week and closed Friday at $39.42, against a trust value of roughly $10.49 per public share. The stock briefly reached $53. Evernorth expects the merger to close Oct. 7, subject to remaining conditions.
Why it matters
Armada held $241.2 million in trust at the end of June. Evernorth's Oct. 1 announcement indicates about $48 million will remain for the transaction, suggesting roughly 80% of trust funds may be returned to shareholders. The final redemption count has not been disclosed. Redemptions can reduce the public float, making a thinly traded stock more sensitive to relatively small orders.
Evernorth expects to hold about 473 million XRP at closing, worth roughly $714 million at Monday's price of $1.51. The financing also includes about $300 million in gross cash proceeds before expenses, including private placements, convertible notes and remaining Armada trust funds, as well as XRP contributed directly by backers.
Market impact
The treasury plan comes with existing exposure to XRP's price decline: 84.4 million XRP bought for $214.1 million through 2025 were worth roughly $127 million at the price cited in the seed. That marks a substantial paper loss on that tranche, while the planned closing holdings remain exposed to further price moves.
Other crypto treasury listings have also struggled after mergers. The combined company's final share count and remaining cash are expected in closing disclosures, with trading expected to begin Oct. 8. Those figures will help investors assess how much XRP backs each share and how the redemption-driven float affects trading.
Frequently asked questions
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Why could Armada shares swing sharply around the merger?
About 80% of Armada's trust funds may be returned to shareholders, which could leave fewer public shares available to trade. In a thinly traded stock, relatively small orders can move the price sharply.
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How much XRP does Evernorth expect to hold after the merger?
Evernorth expects to hold about 473 million XRP at closing, worth roughly $714 million at the Monday price cited in the seed.
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What does Evernorth's financing include besides XRP?
The announced financing includes about $300 million in gross cash proceeds before expenses, including private placements, convertible notes and remaining Armada trust funds.
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How have Evernorth's earlier XRP purchases performed?
Evernorth bought 84.4 million XRP for $214.1 million through 2025. That tranche was worth roughly $127 million at the price cited in the seed.
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What disclosures are expected when the merger closes?
Closing disclosures are expected to show the final share count and remaining cash. Trading in the combined company is expected to begin Oct. 8.
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