The Nasdaq debut for Evernorth was pushed back after the special purpose acquisition company (SPAC) slated to take the XRP treasury firm public saw its shares plummet by 50%.
Trading under the ticker XRPN, Armada Acquisition Corp. II finished Tuesday at $19.20, marking a 50.3% drop from $38.65 the previous day, based on figures compiled by StockAnalysis. The stock had previously peaked at $53 on Oct. 2 after concluding a session at just $10.58 on Sept. 28.
In an Oct. 6 regulatory filing, Evernorth explained that an administrative holdup pushed the expected completion of its merger with Armada from Oct. 7 to roughly Oct. 9. Consequently, the combined entity is now anticipated to begin trading on the Nasdaq around Oct. 12 instead of Oct. 8. Evernorth noted that this postponement is not expected to impact the final closing.
As a result, investors face an extended wait as a speculative surge in Armada stock began to unwind just days prior to the XRP treasury vehicle’s official entry into the public markets.
A near-quadrupling unwinds in days
The upward momentum for XRPN accelerated following the approval of the Evernorth transaction by Armada shareholders on Sept. 30.
The equity finished at $23.43 on Oct. 1, climbed as high as $53 the following day, and wrapped up that session at $39.42. It held steady at $38.65 on Oct. 5 before tumbling to $19.20 on Tuesday.
Even following a 50% drop, XRPN remained roughly 81% higher than its Sept. 28 closing price, illustrating how rapidly participants had bid up the asset ahead of the business combination.
Part of this price volatility may stem from a shrinking supply of Armada shares accessible to market participants seeking exposure prior to Evernorth becoming the listed entity.
According to its quarterly report submitted to the Securities and Exchange Commission (SEC), Armada disclosed 23 million shares subject to redemption as of June 30, supported by $241.2 million held in its trust account—amounting to approximately $10.49 per share.
Subsequently, Evernorth stated that only about $48 million of these trust funds are anticipated to remain with the merged enterprise once the deal is finalized.
Using Armada’s June redemption price as a rough benchmark, that remaining sum would equate to roughly 4.6 million shares left from the original 23 million redeemable units, pointing toward redemptions nearing 80%.
Because the businesses have not yet released the definitive redemption tally, this figure serves as an estimate rather than the confirmed post-merger public float.
Substantial SPAC redemptions can leave a relatively tiny supply of shares available for open-market trading. This dynamic can amplify price swings when buyers rush into a transaction, leading to an equally dramatic pullback once buying interest subsides.
Consequently, XRPN’s price fluctuations present an imperfect gauge of what the fully integrated Evernorth will ultimately command in valuation. Investors are currently pricing a SPAC awaiting finalization rather than the definitive capital structure of the XRP treasury business.
Evernorth’s 473 million XRP bet moves closer to market
Despite the market turbulence, the underlying transaction will establish what Evernorth claims will be the largest publicly traded firm dedicated primarily to an XRP treasury.
Upon closing, the enterprise anticipates holding approximately 473 million XRP alongside roughly $300 million in gross cash proceeds from the deal. This total incorporates $225 million via private placements, $30 million from convertible-note financing, and about $48 million retained from Armada’s trust prior to transaction costs.
Backers of the transaction feature names such as Ripple, SBI Group, Arrington Capital, Pantera Capital, Kraken, and GSR, as outlined in Evernorth’s Oct. 1 announcement.
Evernorth is marketing the vehicle as more than a simple listed shell for an XRP stockpile. Chief Executive Asheesh Birla stated that the firm intends to deploy capital throughout the XRP ecosystem to grow XRP exposure on a per-share basis over time.
The company has utilized this strategy as a core element of its pitch to investors leading up to the merger. Tuesday’s pullback underscores the dangers of applying such a premium to a thinly traded acquisition vehicle before market participants know precisely how many equities will stay in circulation post-closing.
As a result, upcoming disclosures could prove more significant than the two-day administrative postponement itself.
Once the deal is finalized, Evernorth is expected to provide clearer visibility regarding the final redemption tally, the cash delivered from Armada’s trust, and the combined firm’s equity architecture. The merger will additionally bring other potential channels of share supply—such as Armada’s outstanding warrants—into sharper focus.
These metrics will supply investors with a more solid foundation to determine whether XRPN’s lingering premium mirrors the intrinsic value of Evernorth’s XRP strategy or simply the temporary scarcity of available shares ahead of the merger completion.