Evernorth Holdings completed its merger with Armada Acquisition Corp. on Friday. II. Treasury company XRP is set to debut on Nasdaq this Monday, October 12, under the symbol XRPN. It hits the market with around 473 million XRP and almost $300 million raised.
In brief
- Evernorth has completed its merger with Armada Acquisition Corp. II on October 9. Listing under the symbol XRPN is expected this Monday.
- The company holds around 473 million XRP and has raised almost $300 million.
- Ripple, SBI Group, Arrington Capital, Pantera, Kraken and GSR support the project, which aims to increase the amount of XRP held per share.
A merger to open XRP to the markets
The project dates back to March, when Evernorth detailed its XRP treasury strategy in an S-4 filing with the SEC. Seven months later, the company reached a decisive milestone.
Initially scheduled for October 8, the listing was postponed to October 12 for administrative reasons. To go public, Evernorth partnered with Armada Acquisition Corp. II, a shell company listed and sponsored by Arrington XRPCapital Fund.
Armada II shareholders approved the merger on September 30, before the two parties finalized the transaction on October 9. The new group takes over the symbol XRPN.
Actively managed XRP treasury
Evernorth presents itself as a digital asset treasury company and claims one of the largest reserves of XRP held by a listed company. Unlike a strategy that simply involves holding tokens, it wants to actively leverage its holdings to generate value.
Its goal is to increase the number of XRP held per share. To achieve this, the company plans to explore tokenized assets, blockchain-backed credit markets and settlement infrastructures on the XRP Ledger.
“ Our goal was to create something unique, an actively managed XRP treasury, designed to support ecosystem growth with the transparency and governance that public markets demand “, explains Asheesh Birla, founder and managing director.
For investors, however, one distinction remains essential: buying XRPN shares means investing in a company, and not directly holding XRP.
Indirect exposure which remains risky
The interest of Evernorth lies in particular on the simplicity of access. A securities account allows you to gain exposure to XRP without having to manage your private keys or your accounts on crypto platforms yourself. This formula can therefore appeal to investors who prefer traditional markets.
However, this indirect exposure does not guarantee any returns. XRP ETFs attract capital without succeeding in increasing the price. Likewise, the progress of the network has not yet translated into an increase. The arrival of Evernorth on the stock market will therefore not necessarily be enough to reverse the trend.
The precedents of Strategy, for bitcoin, and ether-backed treasury companies also call for caution. The price of their shares depends on the value of the assets held, but also on the premium or discount that the market applies to them.
Evernorth finally plans to celebrate its IPO on October 14, when the Nasdaq closes, with its executives, investors and members of the XRP ecosystem. The event is to be held in Times Square.
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