Details Of Ripple-Evernorth Deal Remain Blurry: How Much XRP Is Really Being Bought?

Markets 2025-10-24 09:37

Momentum around XRP picked up again this week after Ripple-backed Evernorth unveiled plans to go public via a SPAC and use the proceeds to build what it calls the world’s leading institutional XRP treasury. However, there have been questions as to how much of the altcoin is actually being purchased by the company. 

Evernorth’s upcoming Nasdaq listing through a merger with Armada Acquisition Corp. II is expected to raise over $1 billion, but there are questions regarding how much of that capital will go toward open-market purchases of the token versus in-kind contributions.

Confusion Over Evernorth’s XRP Structure

A post on the social media platform X from an account named ScamDetective added to the uncertainty. The user claimed that “most of the XRP in Evernorth will not be purchased” and that “only 14% of their total holdings at close will be purchased,” alleging that the rest would be committed to the fund in-kind for shares.

This means that only about 14% of the proposed $1 billion XRP treasury will be bought from the open market. The rest will be sourced as XRP by other parties. This interpretation quickly spread among XRP holders who feared that Evernorth’s market impact might be far less significant than originally believed.

However, lawyer Bill Morgan quickly countered the claim, explaining that the only confirmed in-kind contribution to Evernorth was the 50 million of the altcoin transferred by Ripple co-founder Chris Larsen. However, Larsen’s in-kind contribution is separate from the cash Evernorth is trying to raise for open-market purchases.

Morgan clarified that SBI Holdings’ $200 million investment was entirely in cash and would be used specifically for open-market purchases once the deal closes. This makes a guaranteed minimum of 20% of the treasury that’s going to be bought from the open market, which is more than the 14% number noted by ScamDetective.

To reinforce his point, Morgan shared an official document from SBI Holdings that outlines the investment structure. The document shows that the proceeds are meant primarily for XRP acquisitions from the open market, and this counters the suggestion that the majority of the token in the treasury will be from token commitments.

The Real Numbers Behind The Headlines

Evernorth’s merger with Armada is planning to raise over $1 billion in total proceeds. Assuming that the majority of those funds are indeed used for open-market purchases, the scale of the accumulation would be massive. 

A $1 billion allocation to the treasury would translate to roughly 415 million to 420 million XRP tokens based on its current trading range. However, until the SEC filings and post-merger financials are released, the exact amount of the altcoin Evernorth will buy is only an estimate.

The treasury would be another positive institutional milestone for the altcoin. At the time of writing, the token’s price is trading at $2.41.

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This content is for informational purposes only and does not constitute investment advice.

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