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Sharp rally in XRP-focused SPAC shares

XRP SPAC shares have risen by about 300% ahead of the planned merger with Evernorth. Expectations that the number of shares still available for trading may have shrunk after redemptions emerged as the main factor behind the stock’s sharp move on relatively light volume.

According to calculations cited in the source, roughly 80% of the money in the trust account appears to have been returned to shareholders. The company did not disclose the final number of shares redeemed in its announcement. A high redemption rate can reduce the pool of public shares left in the market, meaning even small orders can have a noticeable impact on the price.

Post-merger XRP holdings and financing structure

Evernorth expects to hold around 473 million XRP at closing. Based on Monday’s price of about $1.51, that stake is worth roughly $714 million. The announced financing package also includes about $300 million in gross cash proceeds before expenses.

Breakdown of cash sources

  • About $225 million from private placements
  • $30 million from convertible notes
  • $48 million from Armada’s trust account
  • Direct XRP contributions from backers

While the structure is designed to build a sizable XRP treasury on the company’s balance sheet, the cost of the tokens already has become a point of debate.

Purchase cost and performance of similar deals

By the end of 2025, the company had spent $214.1 million to buy 84.4 million XRP. The average purchase price was about $2.54, while that tranche is now worth roughly $127 million. The figures point to a meaningful unrealized loss on part of the XRP bought with cash.

The market is also watching the recent weak performance of similar crypto treasury IPOs and merger deals. Tether-backed Twenty One fell 25% in the early part of trading at its New York Stock Exchange debut in December. ProCap BTC has dropped more than 60% since its own merger. Those comparisons suggest that, despite Evernorth’s short-term price action, volatility may remain high for investors.

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