Friday Nov 7 2025 22:20
2 min
The month-long slump in cryptocurrency prices hasn't just impacted major assets like Bitcoin and Ether; it's also delivering heavy blows to digital asset treasury companies that built their business models around accumulating crypto on their balance sheets. This is a key finding from a recent social media analysis conducted by onchain data firm CryptoQuant, which highlights XRP-focused treasury company Evernorth as a prime example of the risks within this sector.
Reports indicate that Evernorth has experienced unrealized losses of approximately $78 million on its XRP holdings, just weeks after acquiring the asset. The downturn has also negatively impacted shares of Strategy (MSTR), a prominent Bitcoin treasury company. The company's stock has fallen by over 26% in the past month, coinciding with Bitcoin's price decline, according to Google Finance data. CryptoQuant noted a 53% decrease in MSTR shares from their all-time high.
Despite this, Strategy still maintains substantial unrealized gains on its Bitcoin reserves, with an average cost basis of around $74,000 per BTC, as per BitcoinTreasuries.NET. Meanwhile, BitMine, the largest corporate holder of Ether, is currently facing approximately $2.1 billion in unrealized losses related to its Ether holdings, according to CryptoQuant.
BitMine currently holds nearly 3.4 million ETH, having acquired over 565,000 in the past month, according to industry data.
Digital asset treasury companies have been under increasing valuation pressure recently, with analysts cautioning that their market worth is increasingly tied to the performance of their underlying crypto assets. Some analysts, including those at venture capital firm Breed, suggest that only the strongest players will survive, suggesting that Bitcoin-focused treasuries may be in a better position to avoid a potential 'death spiral'. They argue that the risk arises from a collapse in companies' market net asset value (mNAV) – a metric that compares enterprise value to the market value of their cryptocurrency investments.
Others have drawn parallels between the rise of digital asset treasury companies and the dot-com boom and bust of the early 2000s, a period fueled by both long-term visionaries and opportunists seeking quick profits. Ray Youssef, founder of peer-to-peer lending platform NoOnes, predicts that most digital asset treasuries will eventually fade away or collapse as market realities take hold.
Risk Warning: this article represents only the author’s views and is for reference only. It does not constitute investment advice or financial guidance, nor does it represent the stance of the Markets.com platform.When considering shares, indices, forex (foreign exchange) and commodities for trading and price predictions, remember that trading CFDs involves a significant degree of risk and could result in capital loss.Past performance is not indicative of any future results. This information is provided for informative purposes only and should not be construed to be investment advice. Trading cryptocurrency CFDs and spread bets is restricted for all UK retail clients.
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