Largest XRP Treasury Discloses 50% Executive Bonuses Ahead of Nasdaq Debut

Evernorth Holdings, an XRP-focused fund preparing for a Nasdaq listing, has revealed its executive compensation framework in a recent regulatory filing, linking management pay to ambitious growth targets.

According to Amendment No. 5 to its Form S-4 filed with the U.S. Securities and Exchange Commission (SEC), key executives received pre-listing contracts that include target bonuses amounting to 50% of their base salaries, alongside multimillion-dollar equity packages.

The company is completing a merger with Armada Acquisition Corp. II, a special purpose acquisition company (SPAC) backed by Arrington Capital. Upon closing, the combined entity plans to trade under the ticker symbol XRPN, with the goal of becoming the world's largest publicly traded XRP treasury. The listing would follow the model pioneered by MicroStrategy for Bitcoin, extending the corporate treasury concept to XRP and giving equity market participants exposure to the token without holding it directly.

Executive Compensation Details

To incentivize leadership through the listing process, Chief Legal Officer Jessica Jonas was awarded a base salary of $400,000 and a Restricted Stock Units (RSU) package valued at $4.5 million. Chief Growth Officer Sagar Shah and Chief Operating Officer Megumi Nakamura each received $300,000 in fixed annual compensation and $2.8 million in equity awards.

$38.4 Million Impairment Loss Amid Market Pressure

The disclosure of this compensation structure comes at a time when broader cryptocurrency market conditions have placed considerable strain on Evernorth's balance sheet. The fund currently holds a reserve of approximately 473 million XRP tokens.

Although the project raised more than $1 billion in gross proceeds across its financing rounds, a recent decline in the token's market price required the company to recognize a $38.4 million impairment loss on its digital asset holdings. Consequently, the reported value of the fund's cryptocurrency reserves was adjusted to $640 million as of the end of July. Under current accounting standards, companies holding cryptocurrencies must mark assets to market value, meaning reported treasury valuations can fluctuate materially with token prices each reporting period.

Institutional Backing Remains Strong

Despite the unrealized losses, the company's institutional support base continues to hold firm. Beyond its sponsor Arrington Capital, the XRPN project receives direct backing from Ripple, Japanese financial conglomerate SBI Holdings, Pantera Capital, and cryptocurrency exchange Kraken. SBI Holdings' involvement builds on its longstanding partnership with Ripple in cross-border payments across Asia.

For traditional market investors, the Nasdaq listing could serve as a significant regulated entry point into the XRP ecosystem. XRP gained partial regulatory clarity in July 2023, when a federal judge ruled that programmatic sales of the token on public exchanges did not constitute investment contracts, while direct sales to institutional investors remained subject to securities laws. The documents filed with the SEC indicate that the fund's management is prepared to maintain a long-term strategy despite the current unrealized losses on its digital asset holdings. The SPAC merger still requires SEC review and shareholder approval before XRPN can begin trading.