XRPN Stock Makes Nasdaq Debut With XRP Treasury Value Down $443M From Deal Signing

• Evernorth Holdings debuted on Nasdaq Monday with XRP holdings worth much less than when it signed the acquisition. 
• The company holds 473 million XRP and reported $300 million in gross cash proceeds from its merger with Armada Acquisition Corp. II, before transaction costs.
• The merger settlement valued XRP at $1.43, down 40%, affecting investors who contributed XRP for shares.

Evernorth Holdings (XRPN) made its Nasdaq debut Monday with its XRP (XRP) holdings valued at far less than when the company finalized its acquisition.

The company began trading after announcing its plan to go public last week through a merger with Armada Acquisition Corp. II. Evernorth owns roughly 473 million XRP. It also said it had gross cash proceeds of around $300 million, before transaction costs.

How Does XRP’s Price Drop Affect Evernorth’s Valuation?

The SEC filing shows that XRP’s reference price fell from $2.36 when the transaction was signed to $1.43 at closing, a decline of about 39.5%. As a result, the market value of Evernorth’s 473 million XRP holdings dropped from roughly $1.12 billion at signing to $677 million at closing, a difference of about $443 million.

The gap is important because the business is a XRP treasury, and its gains are measured by on-paper profit on XRP’s value. Evernorth has no revenue from operations. Like Bitcoin (BTC) treasury Strategy (MSTR), and Ethereum (ETH) treasury Bitmine Immersion Technologies (BMNR), XRPN lets investors get XRP exposure in a brokerage account rather than on a crypto exchange. 

Its backers include Ripple, Kraken, Pantera Capital and SBI Group.

Most Backers Walked Away

When the merger was done, Armada’s shareholders in the company had a choice. They could stay invested in the new XRP treasury company, or they could turn their shares back in for cash. According to its most recent filing, around 80.3% took the cash. That cut about $195.3 million from the deal. 

XRPN stock rose up as much as 2% to cross $19 on Monday, before paring most of those gains by midday trade. On Stocktwits, retail sentiment around XRPN remained in the ‘bullish’ zone, as chatter around it dipped to ‘high’ from ‘extremely high’ over the past day. 

XRP’s price fell as much as 1.6% in the last 24 hours to under $1.40, leaving XRPN with paper losses on its balance sheet. At that price, the XRP holdings are worth roughly $457 million less than at the signing price and about $14.5 million less than at the merger’s closing reference price.

On Stocktwits, retail sentiment around XRP remained in the ‘extremely bearish’ zone, accompanied by ‘low’ chatter levels.

Evernorth is due to ring the Nasdaq closing bell on Wednesday. 

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