Yes ... the cap is 850 non-floating so I would assume so.... but that is pretty high.
Odd that with servers able to handle 1000 they choose such a low number. Pop both servers up at max and let the folks decide where they want to be. Might have to control how many can switch arenas in a given time frame. That would ensure that if large squads up in a room... and folks don't want huge offset numbers, they can opt to the other arena and not have to worry the Squad might follow.