The ongoing crypto market downturn is beginning to expose cracks in the business models of digital asset treasury (DAT) firms — companies that accumulate cryptocurrencies as core balance sheet assets.
According to on-chain data firm CryptoQuant, XRP-focused treasury company Evernorth has suffered nearly $78 million in unrealized losses on its XRP holdings, just weeks after adding the asset to its reserves. Analysts say the case underscores growing pressure across the digital treasury sector, which has been hit hard by falling crypto valuations.
Crypto Selloff Deepens DAT Losses
The broader correction has also impacted Strategy (MSTR) — widely seen as the original Bitcoin treasury firm. Shares of Strategy have dropped over 26% in the past month, and are now 53% below their all-time high, according to Google Finance data.
Despite the decline, the company still holds significant unrealized gains, with an average Bitcoin acquisition cost of around $74,000, based on BitcoinTreasuries.NET data.
Meanwhile, Ether-heavy BitMine, the largest Ethereum-holding corporation, is estimated to be sitting on $2.1 billion in unrealized losses. The firm currently controls 3.4 million ETH, having added over 565,000 ETH in the last month — a sign of its continued accumulation strategy despite market headwinds.
DATs Face Valuation Crisis as Market Shifts
Industry analysts warn that digital asset treasury companies could face a “valuation reckoning” similar to the dot-com crash, as market prices and enterprise values diverge.
“Only the most disciplined treasuries will survive this cycle,” noted one analyst from venture firm Breed. “Bitcoin-focused firms may hold structural advantages due to stronger institutional demand.”
Ray Youssef, founder of peer-to-peer platform NoOnes, added that many DATs could ultimately collapse if market realities continue to erode their net asset values.
As the market recalibrates, Evernorth’s XRP losses stand as a warning: in a volatile crypto environment, treasury strategies built on accumulation face as much risk as reward.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.