Key facts
- Evernorth Holdings, backed by Ripple, amended its merger agreement with Armada Acquisition Corp II.
- The amendments aim to reduce the number of shares issued and increase the XRP backing per share.
- The share count will be determined by XRP's volume-weighted average price at closing, not a fixed price.
- Evernorth Holdings has secured over $1 billion in funding from investors including Arrington Capital, SBI Group, Ripple, Pantera Capital, Kraken, and GSR.
- Armada Acquisition Corp II's stock (XRPN) reached a year-to-date high of $10.50.
- JPMorgan has revealed holdings in Bitwise and Grayscale XRP ETFs.
Evernorth Holdings, a Ripple-backed XRP treasury, has amended its merger agreement with Armada Acquisition Corp II, a move intended to strengthen investor alignment and enhance the company's positioning for a Nasdaq listing. The amendments to the subscription agreements for its private placement will result in fewer shares being issued, thereby increasing the proportion of XRP backing each outstanding share.
The company stated that this structure is designed to align its capitalization with the market value of its underlying XRP holdings at the time of the merger's closing. Instead of a fixed price, the share count will be based on a volume-weighted average XRP price. Asheesh Birla, founder and CEO of Evernorth Holdings, commented that tying the share count to XRP's value at closing is the appropriate course of action for both the company and its investors.
Evernorth Holdings has successfully raised over $1 billion from a notable group of investors, including Arrington Capital, SBI Group, Ripple, Pantera Capital, Kraken, and GSR. Meanwhile, Armada Acquisition Corp II's stock, trading under the ticker XRPN, has shown resilience, reaching a year-to-date high of $10.50 in premarket trading on Thursday. The stock closed slightly higher on Wednesday and has seen a nearly 0.30% increase over the past month, with investors anticipating the merger's approval.
This development occurs as the price of XRP fluctuates, trading in the $1 to $1.02 range after a recent decline. Despite this, institutional interest in XRP appears to be growing, evidenced by JPMorgan's revealed holdings in Bitwise and Grayscale XRP ETFs.