XRP Treasury Firm Moves Closer to Nasdaq as Shareholders Prepare to Vote

Evernorth has moved closer to becoming a publicly traded XRP treasury company after the U.S. Securities and Exchange Commission cleared its registration filing. The Ripple-backed firm now awaits a shareholder vote before it can pursue a Nasdaq listing under the ticker XRPN.

The San Francisco-based company was formed to hold XRP as a core corporate reserve asset. With the SEC process cleared, shareholder approval represents the next major hurdle in its path to the public market.

Evernorth plans to go public through a combination with Armada Acquisition Corp. II, a special-purpose acquisition company (SPAC) created to raise capital and merge with a private business. The structure provides an alternative to a conventional initial public offering.

Armada shareholders are set to vote on the proposed transaction on Sept. 30. Approval would result in a combined company expected to trade on Nasdaq under XRPN. Evernorth said it expects the transaction to close either in late September or during October.

The firm has secured investment from several major participants in the crypto industry. Its backers include Ripple, Arrington Capital, Japan’s SBI Group, Pantera Capital, Kraken and GSR.

Founder and CEO Asheesh Birla previously spent over a decade at Ripple, where he led the company’s payments business before leaving.

Evernorth Adopts an Active XRP Treasury Model

Public crypto treasury companies have largely followed a straightforward approach of accumulating and holding a single digital asset. Strategy became the best-known example of this model through its Bitcoin purchases.

Evernorth intends to use a more active approach. The company plans to invest in infrastructure related to XRP while managing its holdings with the goal of increasing the amount of XRP backing each share over time.

The company has not yet explained how it plans to achieve that increase.

The strategy also faces the same valuation challenge encountered by other crypto treasury firms. Such companies can trade either above or below the value of their underlying digital-asset holdings. When a treasury firm’s shares fall below the value of its reserves, issuing new equity becomes a less effective way to raise capital.

Several Bitcoin treasury companies have recently traded below the value of their holdings, highlighting the risks associated with relying on a persistent market premium.

XRP was trading near $1.41 on Thursday, up more than 27% over the previous seven days.