Evernorth’s XRP losses reveal growing strain on DATs
The post Evernorth’s XRP losses reveal growing strain on DATs appeared on BitcoinEthereumNews.com.
A month-long downturn in cryptocurrency prices is adding fresh pressure to digital asset treasury companies (DATs), and Evernorth’s substantial losses on its recent XRP investment are quickly emerging as one of the most prominent marks of that stress. Evernorth recently made headlines for its significant acquisition of large allocations of XRP. However, the timing may not have been any more opportune, or less, according to fresh analysis by on-chain data provider CryptoQuant. Evernorth and DATs Feel the Heat as Crypto Losses Mount Just weeks after building up its position in XRP, Evernorth now has around $78 million in unrealized losses. The drop demonstrates how sensitive DATs are to price fluctuations — not only in Bitcoin and Ethereum, but also in other tokens that might move with less liquidity and more volatility. Evernorth is not alone. Shares of Strategy (MSTR), widely regarded as the first prominent corporate Bitcoin treasury model, have declined by more than 26% over the last month as the price of Bitcoin has retreated. Shares of Strategy are now down by more than 50% from their all-time high, according to market data. Despite all that pressure, Strategy is still in relatively good shape. A report from BitcoinTreasuries indicates that the firm has an estimated average cost of around $74,000 per BTC for its reserves, implying that it still maintains a significant amount of paper profit on its Bitcoin holdings. NET. More worrisome are the companies whose primary holdings reside in other major cryptocurrencies. BitMine, which holds more corporate Ethereum than any other company in the world, now has a nearly $2.1 billion loss on its unrealized Ether reserves. The firm now holds almost 3.4 million ETH, with over 565,000 being acquired in the last month alone, suggesting that accumulation persisted even as market momentum diminished. Left watching the…
