Shares of Armada Acquisition Corp. II exhibited a remarkable surge last week, climbing by approximately 273% in anticipation of its merger with XRP-focused treasury firm, Evernorth. Data from StockAnalysis revealed that the company, trading under the ticker XRPN, closed at $39.42 on Friday, peaking at $53 during the session. This marks a significant jump from the prior week’s close of $10.58.
Merger Timeline and Transaction Structure
Evernorth, in a statement to CoinDesk via email, indicated that the merger is anticipated to finalize on October 7, contingent upon fulfilling the remaining prerequisites. Upon completion, hundreds of millions of XRP alongside new shareholders will be integrated into the publicly traded structure.
Armada operates as a Special Purpose Acquisition Company (SPAC), amassing investor funds, which it holds in trust. This capital is then used to merge with a private entity, facilitating its transition to a public one. Shareholders of the publicly traded SPAC retain the right to redeem their shares for cash prior to the merger’s finalization.
Evernorth expects to complete the merger on October 7, pending the satisfaction of remaining conditions.
Trust Account Dissolution Raises Eyebrows
As of the end of June, Armada’s trust account held $241.2 million. According to the company’s quarterly report, the redemption value per public share was approximately $10.49. Evernorth’s announcement on October 1 projected that only about $48 million would remain in the trust, set aside for the transaction.
Analyzing these figures implies that roughly 80% of the trust funds could be redeemed by shareholders. While the exact number of withdrawals remains undisclosed, such high redemption rates can decrease the number of shares available on the market, potentially causing significant price movements even with relatively small trade orders.
The remaining $48 million trust account suggests a potentially sharp reduction in free-floating shares post-transaction.
XRP Holdings and Financial Picture
Evernorth anticipates holding approximately 473 million XRP at the closing of the deal. At Monday’s XRP price of roughly $1.51, these holdings are valued at about $714 million. The disclosed financial framework also consists of nearly $300 million in gross cash funds pre-expenses, sourced from $225 million in private placements, $30 million from convertible notes, and $48 million contributed by Armada’s trust. Notably, backers have provided direct XRP contributions.
Conversely, there appears to be a shortfall in a portion of the XRP acquired with cash. The company spent $214.1 million to procure 84.4 million XRP by the end of 2025, at an average cost of about $2.54 per unit. Presently, this section’s value approximates $127 million, indicating depreciation.
Mixed Performance in Similar Transactions
This merger comes amid sustained interest in the public listing of crypto treasury firms. However, similar ventures have not consistently performed well. Tether-backed Twenty One saw its stock plummet 25% during its inaugural trading days on the New York Stock Exchange in December. ProCap BTC experienced an over 60% decline following its own merger.
