Markets — Armada Acquisition Corp. II, the special purpose acquisition company (SPAC) merging with XRP treasury firm Evernorth, saw its shares surge approximately 273% last week, significantly boosting the stock's value ahead of the anticipated merger closure on October 7.
Significant Stock Surge
The stock of Armada Acquisition Corp. II (XRPN) closed at $39.42 on Friday, marking a 68% increase for that day alone and a staggering 273% rise over the week, as reported by StockAnalysis data. The shares peaked at $53 during the week, compared to $10.58 just a week prior, and continued to climb, gaining an additional 9.5% in pre-market trading on Monday.
Evernorth has communicated via email to CoinDesk that it expects to finalize the merger on Wednesday, October 7, pending the fulfillment of remaining conditions.
As a SPAC, Armada has accumulated funds that it holds in trust, which it uses to merge with private entities. Shareholders have the option to redeem their shares for cash before the merger is completed, rather than retaining equity in the newly formed entity.
At the end of June, Armada's trust held $241.2 million, with a redemption value of about $10.49 per public share, according to its quarterly report. Evernorth's announcement on October 1 indicates that around $48 million from the trust will be allocated to the transaction.
Estimations suggest that approximately 80% of the trust funds will be returned to shareholders, based on CoinDesk's calculations. The announcement did not disclose the exact number of shares that would be redeemed.
Such redemptions can lead to a decrease in the number of publicly traded shares, causing significant price fluctuations from even modest trading volumes.
A $714 Million XRP Investment
Evernorth is forecasting that it will hold roughly 473 million XRP upon the merger's completion. At the current price of around $1.51, this would equate to a value of about $714 million. The financing for this deal also includes approximately $300 million in gross cash proceeds before expenses, which consists of $225 million from private placements, $30 million in convertible notes, and $48 million from Armada’s trust. Additionally, backers have contributed XRP directly.
However, some XRP acquired with cash has depreciated significantly compared to what Evernorth originally paid. The company invested $214.1 million to purchase 84.4 million XRP through the end of 2025, averaging around $2.54 per coin; this amount is now valued at approximately $127 million.
This merger occurs amidst a challenging landscape for other cryptocurrency treasury listings following their mergers. For instance, Tether-backed Twenty One experienced a 25% drop during its NYSE debut in December, nearing the $10 price that private investors paid. ProCap BTC has also seen a decline of over 60% since its merger.
Final disclosures from Evernorth should clarify the ultimate share count and remaining cash reserves, with the combined entity expected to commence trading on Thursday, October 8.