The SPAC bringing an XRP treasury to Nasdaq quadrupled and then halved before the deal even closed.
๐ What happened
Per CryptoSlate, Armada Acquisition Corp. II, which is merging with XRP treasury company Evernorth, closed at $19.20 on October 6, down 50.3% in a day. It had gone from $10.58 on September 28 to an intraday high of $53 on October 2. The merger closing slipped from October 7 to around October 9, with Nasdaq trading under XRPN now expected around October 12.
๐ Why it matters
โข Evernorth is expected to hold about 473 million $XRP at closing, with roughly $300 million of gross cash, including $225 million from private placements.
โข CryptoSlate estimates redemptions near 80%, leaving about $48 million of the $241 million trust. A thin float explains much of the volatility.
โข Treasury companies trade on the gap between share price and the value of their holdings. A 50% drop in a day shows how fast that premium can vanish.
๐ What to watch
โข The actual closing and the first Nasdaq session, and whether the shares settle near the value of the XRP held.
โข The risk: if redemptions are as high as estimated, the company starts with far less cash than headlines suggested, and XRP itself is down about 7% on the week per CoinGecko.
๐ฌ Would you rather hold XRP directly or shares in a company that holds it?
#XRP #Evernorth #Nasdaq
๐ What happened
Per CryptoSlate, Armada Acquisition Corp. II, which is merging with XRP treasury company Evernorth, closed at $19.20 on October 6, down 50.3% in a day. It had gone from $10.58 on September 28 to an intraday high of $53 on October 2. The merger closing slipped from October 7 to around October 9, with Nasdaq trading under XRPN now expected around October 12.
๐ Why it matters
โข Evernorth is expected to hold about 473 million $XRP at closing, with roughly $300 million of gross cash, including $225 million from private placements.
โข CryptoSlate estimates redemptions near 80%, leaving about $48 million of the $241 million trust. A thin float explains much of the volatility.
โข Treasury companies trade on the gap between share price and the value of their holdings. A 50% drop in a day shows how fast that premium can vanish.
๐ What to watch
โข The actual closing and the first Nasdaq session, and whether the shares settle near the value of the XRP held.
โข The risk: if redemptions are as high as estimated, the company starts with far less cash than headlines suggested, and XRP itself is down about 7% on the week per CoinGecko.
๐ฌ Would you rather hold XRP directly or shares in a company that holds it?
#XRP #Evernorth #Nasdaq