Evernorth’s Unrealized Xrp Losses Expose Mounting Pressure On Dats:...

The latest crypto downturn is hammering companies that built their business models around holding digital assets.

The month-long slide in crypto prices hasn’t just hit major assets like Bitcoin (BTC) and Ether (ETH) — it’s also dealing heavy losses to digital asset treasury companies that built their business models around accumulating crypto on their balance sheets.

That’s one of the key takeaways from a recent social media analysis by onchain data company CryptoQuant, which cited XRP-focused treasury company Evernorth as a prime example of the risks in this sector.

Evernorth has reportedly seen unrealized losses of about $78 million on its XRP position, mere weeks after acquiring the asset.

The pullback has also battered shares of Strategy (MSTR), the original Bitcoin treasury play. The company’s stock has dropped by more than 26% over the past month, as Bitcoin’s price has slumped, according to Google Finance data. CryptoQuant noted a 53% drop in MSTR shares from their all-time high.

However, Strategy still holds a sizable unrealized gain on its Bitcoin reserves, with an average cost basis of roughly $74,000 per BTC, according to BitcoinTreasuries.NET.

Meanwhile, BitMine, the largest Ether-holding corporation, is now sitting on approximately $2.1 billion in unrealized losses tied to its Ether reserves, according to CryptoQuant.

BitMine currently holds nearly 3.4 million ETH, having acquired more than 565,000 over the past month, according to industry data.

Related: Ripple-backed Evernorth nears launch of publicly traded XRP treasury

Digital asset treasury companies, or DATs, have come under mounting valuation pressure in recent months, with analysts cautioning that their market worth is increasingly tied to the performance of their underlying crypto holdings.

Source: CoinTelegraph