Evernorth's XRP Strategy Hinges on Share Count After Nasdaq Vote

The Evernorth Holdings' merger with Armada Acquisition Corp. II is set to give the XRP treasury firm authorization for up to 10 billion shares after a Nasdaq vote scheduled for September 30.

This would allow Evernorth, which targets growth in XRP per share, to enter the public market with more than 473.3 million XRP and increase its holdings through capital markets activity, institutional and decentralized finance yield strategies, and participation across the XRP ecosystem.

According to a filing with the US Securities and Exchange Commission (SEC), the proposed charter would authorize 7.4 billion Class A shares, 100 million Class B shares, 2.4 billion Class C shares, and 100 million preferred shares. However, only about 34.5 million Class A shares and 11.5 million warrants are covered in the transaction itself.

Evernorth's capital flexibility raises concerns that every additional share would increase the amount of XRP needed to achieve higher XRP per share. To mitigate this risk, the company plans to use institutional lending, liquidity provision and DeFi strategies to put its existing treasury to work.