XRP Treasury Firm Evernorth's Shares Rise 5% in Nasdaq Debut
Key Takeaways
- •Evernorth Holdings' Nasdaq debut saw its XRPN shares rise as much as 5% at the opening print on Monday, in a listing the company describes as the first pure-play XRP digital asset treasury to go public.
- •Hugo Jeandesboz, previously co-chief investment officer of Coinbase Asset Management, was appointed chief investment officer of Evernorth, with duties covering treasury allocation, liquidity management, and active management of XRP holdings.
- •Unlike passive reserve holders, Evernorth deploys its XRP across decentralized finance yield strategies to generate additional income on its reserves.
- •On Oct. 2, shareholders of blank-check firm Armada Acquisition Corp. II approved the SPAC combination with Evernorth, and closing that deal remains the final step before the projected treasury position is reached.
- •Upon completion of the combination, Evernorth expects to hold approximately 473 million XRP valued at about $657 million, which the company said would make it the largest publicly traded XRP treasury company.
Shares of Evernorth Holdings, the XRP-focused digital asset treasury company trading under the ticker XRPN, rose as much as 5% at the opening print of its Nasdaq debut on Monday, according to Yahoo Finance data. Investors welcomed the listing of what the company describes as the first pure-play XRP digital asset treasury to go public.
Earlier on Monday, the company named Hugo Jeandesboz, formerly co-chief investment officer of Coinbase Asset Management, as its new chief investment officer. According to the Monday announcement, Jeandesboz will lead treasury strategy at Evernorth, with responsibility for treasury allocation, liquidity management, and the active management of the firm's XRP holdings.
Evernorth does not simply hold XRP in reserve. The company deploys its XRP holdings across decentralized finance (DeFi) yield strategies to generate additional income on its reserves.
Treasury companies of this kind offer public-market investors listed exposure to a cryptocurrency by holding the token on their corporate balance sheets, a model that has gained traction across the digital asset industry in recent years. Evernorth's use of DeFi yield strategies adds an active-management dimension to that balance-sheet model.
Monday's Nasdaq debut followed a key corporate milestone. On Oct. 2, shareholders of blank-check firm Armada Acquisition Corp. II approved the plan to combine the special purpose acquisition company with Evernorth. Upon completion of the combination, Evernorth expects to hold approximately 473 million XRP, currently worth about $657 million, a position the company said would make it the largest publicly traded XRP treasury company. Completion of the combination is the remaining step before that projected position is reached, making the closing of the deal the next corporate milestone to watch.
As for the XRP token itself, it was recently changing hands at $1.39 apiece, with $1.48 billion worth traded over the past 24 hours, according to CoinGecko data. At that price, XRP carries a market capitalization of roughly $87.8 billion, ranking as the fifth-largest cryptocurrency. Because the treasury's reserves are denominated in XRP, that price directly determines the value of Evernorth's holdings.
Source: Cointelegraph
