Evernorth’s $78M XRP Losses Expose Crypto Treasury Risks
Evernorth’s $78M XRP losses follow large XRP acquisitions before a downturn, underscoring digital asset treasury strains. These XRP losses highlight the risk of holding volatile altcoins.
Other DATs face similar unrealized losses. MicroStrategy’s shares fell over 26% as Bitcoin retreated, though its $74,000 average cost per BTC remains profitable. BitMine now reports nearly $2.1 billion in unrealized losses on 3.4 million ETH, including 565,000 ETH bought during the decline.
On-chain data from CryptoQuant and BitcoinTreasuries show that poor timing and liquidity risk amplify losses for funds exposed to XRP and Ethereum. Analysts compare the squeeze to late-1990s tech bubbles and suggest Bitcoin-focused treasuries may fare better thanks to higher liquidity and clearer regulations.
Traders should monitor price volatility, diversify holdings, reinforce treasury policies, and track regulatory updates to navigate ongoing market risks.
Bearish
Evernorth’s large XRP losses and similar unrealized losses at MicroStrategy and BitMine underscore heightened market volatility and liquidity risks. In the short term, this leads to bearish sentiment for XRP as traders reduce altcoin exposure. Over the long term, improved regulatory clarity and liquidity may benefit Bitcoin-focused treasuries, but altcoin-heavy treasuries remain vulnerable to price swings.