XRP Treasury SPAC Explodes Higher Ahead of Evernorth Merger

Armada Acquisition Corp. II shares climbed roughly 273% last week, sending the thinly traded SPAC to nearly four times the value of the cash backing its public shares ahead of its planned merger with XRP treasury firm Evernorth.

Armada (XRPN) closed Friday at $39.42, up 68% for the session, according to StockAnalysis data. The stock reached a weekly high of $53, compared with $10.58 a week earlier. It then gained another 9.5% in Monday’s premarket trading.

Evernorth said it expects the merger to close Wednesday, Oct. 7, subject to the completion of the remaining conditions.

Armada is a special purpose acquisition company that raised capital and placed the proceeds into a trust before pursuing a merger with a private business. Investors in the SPAC can redeem their shares for cash before closing rather than participate in the combined company.

The trust contained $241.2 million at the end of June, giving public shareholders a redemption value of about $10.49 per share, according to Armada’s quarterly filing. Evernorth said Oct. 1 that approximately $48 million of the trust proceeds would remain available for the transaction.

The figures indicate that roughly 80% of the trust assets could be returned to shareholders, according to CoinDesk calculations. A final figure for the number of redeemed shares has not been disclosed.

A large wave of redemptions can significantly reduce a SPAC’s public float. With fewer shares available in the market, even relatively small trades can cause substantial price swings.

Evernorth’s XRP Holdings

The combined company is expected to hold approximately 473 million XRP when the merger closes. At Monday’s price of around $1.51, the treasury would be valued at roughly $714 million.

Evernorth has also outlined about $300 million in gross cash proceeds before expenses. The amount includes $225 million from private placements, $30 million in convertible notes and $48 million from Armada’s trust. Backers have separately provided XRP to the company.

Some of Evernorth’s existing XRP holdings were acquired at significantly higher prices. Through the end of 2025, the company spent $214.1 million on 84.4 million XRP, producing an average acquisition price of approximately $2.54. At Monday’s price, that position would be worth about $127 million, according to figures reported by CoinDesk in March.

The transaction is taking place amid mixed results for crypto treasury companies that have gone public through similar mergers.

Tether-backed Twenty One declined 25% during its NYSE debut in December, falling toward the $10 level paid by private-placement investors. ProCap BTC had lost more than 60% from its merger level by then.

Evernorth’s final closing disclosures should reveal the number of shares remaining after redemptions as well as the cash left in the deal. Trading in the combined company is expected to begin Thursday, Oct. 8.