According to filings, Evernorth has signed a business combination agreement with Armada Acquisition Corp II (AACI). The transaction is structured as a SPAC and is expected to bring in over US$1 billion before costs and possible shareholder redemptions.
That makes the move different from many crypto plays that simply build products; here the asset itself is the core holding to be managed and reported publicly.
Markets reacted quickly. XRP saw noticeable price swings after the announcement as traders and funds repositioned their exposure. Details in the filings show that the final amount available for XRP purchases will depend on redemptions and transaction costs, which could significantly affect the company’s buying power.
Evernorth is also expected to outline its custody and risk management framework, given the volatility associated with large token holdings. These aspects are critical since concentrated ownership can influence market movement and expose the firm to sharp changes in asset value.
Some of the investors involved have long ties to Ripple and the wider crypto market, and those ties are being watched closely by regulators and market participants. The governance arrangements will be a focal point for anyone considering buying XRPN shares.
Featured image from Pexels, chart from TradingView
