The US Securities and Exchange Commission (SEC) has officially declared the registration statement of Evernorth Holdings effective. The administrative decision paves the way for the XRP treasury firm to complete its merger with Armada, a special purpose acquisition company (SPAC) already listed on Nasdaq.
Shareholders are scheduled to cast their decisive votes on September 30, 2026, with the share redemption deadline falling two days earlier on September 28. If approved by a majority, the newly combined entity will begin trading immediately on Nasdaq under the ticker XRPN. The merger is targeted for completion in late Q3 or early Q4 this year, establishing Evernorth as the world’s largest publicly traded XRP treasury company.
CEO Asheesh Birla hailed the regulatory green light as a major milestone toward the proposed business combination. Evernorth’s move coincides with cumulative spot XRP ETF inflows surpassing $1.637 billion. However, the SEC’s effective declaration is strictly a procedural clearance of documentation. The decision is not an endorsement of the merger, not a validation of Evernorth’s business model, and cannot be interpreted as support for XRP as an investment asset.
Following the Strategy Treasury Model
Evernorth falls under the Digital Asset Treasury (DAT) category. This specialized operating model uses digital asset holdings as the primary store of value for a public company. The coin accumulation strategy originally pioneered by Strategy for Bitcoin is now being replicated in the XRP ecosystem.
First announced last October, the project comes with substantial institutional backing. Heavyweights such as Ripple, Arrington Capital, SBI Group, Pantera Capital, Kraken, and GSR are among its financial supporters. The consortium has assembled over $1 billion earmarked specifically for purchasing XRP from the open market.
The initial target calls for holding at least 473 million XRP tokens. That benchmark includes an additional contribution from Ripple - a fresh capital injection that will only be released after the merger with Armada is completed.
Risks in the Capital Cycle
Rather than simply holding the assets, Evernorth plans to actively manage its XRP treasury. The company aims to generate additional yield through participation in decentralized finance (DeFi) protocols, operating network validators, and deploying capital for ecosystem investments.
Nevertheless, the DAT model carries structural vulnerabilities. Its expansion relies entirely on maintaining a stock price premium - trading higher than the net asset value of the XRP held by the company. If the price of XRP drops sharply in the open market, this vital funding cycle could falter, stalling further expansion.
The shareholder vote later this month will determine the company’s direction. Source: Decrypt.
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Previously: Form S-4 Declared Effective, Fate of Evernorth Merger and XRPN Nasdaq Listing Set for September 30
Disclaimer: This article is for informational and educational purposes only, not financial advice. Cryptocurrency assets are highly volatile and carry significant risk. Always do your own research (DYOR) and never invest more than you can afford to lose.
