Evernorth, Ripple-backed fintech company, went public via SPAC merger with 473M XRP holdings now worth 40% less than acquisition price.
Macro & Markets ·
Evernorth, a Ripple-backed company focused on accumulating XRP, began trading on Nasdaq on Monday under ticker XRPN following the closure of its merger with SPAC Armada Acquisition Corp. II. The company holds approximately 473 million XRP and $300 million in gross cash, though the cryptocurrency's value has deteriorated significantly since the deal was announced. XRP fell from $2.37 at signing to a $1.43 reference price at closing, reducing the value of Evernorth's treasury to roughly $677 million—substantially below the more than $1 billion the company initially raised to purchase tokens.
The public market reception reflected sharp redemptions by SPAC investors. Approximately 80% of Armada's shareholders redeemed their shares before closing, withdrawing about $195 million and leaving a minimal float of only 4.5 million shares. This tight supply caused extreme volatility, with the stock reaching $53 intraday before settling lower as trading began in earnest.
Evernorth belongs to a category of digital asset treasuries—public companies whose primary function is holding and accumulating cryptocurrency. The model's viability depends on a metric called mNAV, which measures whether a company's stock trades at a premium or discount to its underlying crypto holdings. With XRP down roughly 40% from its acquisition price, Evernorth now faces challenges in raising capital for further purchases without diluting existing shareholders.