Armada Acquisition Corp. II posted a roughly 273% weekly gain as speculation ahead of its merger with XRP treasury company Evernorth sent the SPAC’s thinly traded shares sharply higher.
The stock closed Friday at $39.42 after rising 68% during the session, according to StockAnalysis data. It reached as high as $53, compared with $10.58 a week earlier. Armada shares were up another 9.5% in premarket trading Monday.
Evernorth said it expects to complete the merger on Wednesday, Oct. 7, provided all outstanding conditions are satisfied.
Armada is a special purpose acquisition company that raises capital and places the funds into a trust while searching for a private company to merge with. SPAC investors can redeem their shares for cash before the merger closes instead of holding shares in the resulting public company.
The SPAC reported $241.2 million in trust assets at the end of June, giving its public shares a redemption value of approximately $10.49 each. Evernorth said Oct. 1 that about $48 million from the trust would remain available to fund the transaction.
That implies that close to 80% of the trust’s capital could be returned through redemptions, according to CoinDesk calculations. The final number of redeemed shares has not yet been released.
Large-scale redemptions can reduce the available public float and make the remaining shares particularly sensitive to relatively small trading orders.
$714 Million XRP Treasury
Evernorth expects to own roughly 473 million XRP once the transaction closes. With XRP trading near $1.51 on Monday, the tokens would be valued at approximately $714 million.
The transaction also includes around $300 million in gross cash proceeds before expenses. The funding consists of $225 million raised through private placements, $30 million from convertible notes and $48 million from Armada’s trust. Investors have also committed XRP directly to the company.
Evernorth’s existing XRP holdings include tokens bought at considerably higher prices. The company spent $214.1 million to purchase 84.4 million XRP through the end of 2025, an average of approximately $2.54 per token, according to CoinDesk’s March report. That position is now worth about $127 million at current prices.
The planned listing comes as other crypto treasury companies have struggled to maintain their valuations following similar mergers.
Tether-backed Twenty One fell 25% in early trading on its NYSE debut in December, moving close to the $10 price paid by private-placement investors. ProCap BTC had dropped more than 60% from its merger level by the same period.
Evernorth’s final closing disclosures should clarify the number of shares remaining after redemptions and the cash balance available to the combined company. The newly merged business is expected to start trading Thursday, Oct. 8.
