Shareholders of Armada Acquisition Corp. II have until 5 p.m. Eastern on Sept. 28 to decide whether to redeem their public shares ahead of a Sept. 30 vote on a proposed business combination with XRP treasury firm Evernorth Holdings. Every share redeemed directly reduces the cash pool available to Evernorth for potential post-merger XRP market acquisitions.
Trust Redemptions and Current Treasury Structure
Armada reported $241.9 million in its trust account as of Aug. 20, translating to an illustrative redemption value of $10.52 per share. In its quarterly report for the period ending June 30, the SPAC held $241.2 million in trust with 23 million shares eligible for redemption. Shareholder redemptions will determine how much of that trust capital survives the transaction after covering corporate expenses and transaction costs.
At closing, Evernorth expects to hold a corporate treasury of at least 473,276,430 XRP. However, this figure includes both previously acquired assets and committed transfers rather than uncommitted cash. For instance, the total includes 126,791,458 XRP contributed directly by Ripple. Additionally, an SEC filing referencing a November 2025 announcement revealed that Evernorth previously bought 84,365,876.3625 XRP at an average price of $2.53657058 using proceeds from a $214 million private placement. As market participants monitor broader trends like accelerating XRP ETF momentum, Evernorth's discretionary buying will depend strictly on post-vote liquid balances.
Convertible Note and Capital Allocations
To supplement its post-closing liquidity, Evernorth entered into an agreement on Sept. 11 to issue $30 million in 4% convertible senior payment-in-kind notes due 2031, according to a Sept. 17 Form 8-K filing. The notes are scheduled to fund upon closing, with proceeds designated for general corporate purposes, including potential XRP ecosystem purchases.
At a reference market price of $1.54 per XRP, static illustrative calculations highlight how redemption levels shape potential token demand:
- $30 million note proceeds: Could purchase approximately 19.5 million XRP if fully allocated.
- Full $241.9 million trust: Represents an upper bound of roughly 157 million XRP assuming zero redemptions or transaction fees.
- 50% redemption scenario: Leaves $121 million in trust, equivalent to about 78.5 million XRP at $1.54.
An August amendment also adjusted the share conversion terms for private placement investors, replacing the initial $2.36 deal signing price with a volume-weighted average price to determine closing share issuances.
- Redemption Deadline: 5 p.m. Eastern on Sept. 28.
- Merger Vote: Scheduled for Sept. 30.
- Trust Balance: $241.9 million as of Aug. 20 ($10.52 per share).
- Expected Treasury: 473,276,430 XRP total, including 126,791,458 XRP from Ripple.
Why It Matters
Evernorth’s deal illustrates the operational reality of corporate crypto treasuries funded through traditional SPAC structures, where headline trust figures rarely translate into net buying power. High redemption rates across recent SPAC combinations mean secondary market purchases often fall far short of initial model upper bounds. Furthermore, because a significant portion of Evernorth's baseline balance consists of commitments from Ripple and prior private placement executions, market observers tracking spot demand must separate historical holdings from actual net-new cash influxes as XRP tests key structural levels.
