Bitcoin, XRP Treasuries Bleed as Market Downturn Hits Corporate Holdings

Updated 1 hour ago by · 2 mins read

Both Bitcoin, XRP, and altcoin treasury firms, including Evernorth, are recording massive figures in unrealized losses.

Blockchain analytics platform CryptoQuant noted that Evernorth’s XRP XRP $2.28 24h volatility: 2.4% Market cap: $136.30 B Vol. 24h: $5.27 B stake has incurred $78 million in unrealized losses. This comes less than 3 weeks after the company’s entry into the new niche. The prices of cryptocurrencies are falling, and this has clearly dragged crypto treasury firms on a bearish path.

Bitcoin May Push Below $100,000

Bitcoin BTC $101 712 24h volatility: 0.7% Market cap: $2.03 T Vol. 24h: $85.10 B has been losing steam in the last few weeks, going as low as $98,000 earlier this week.

Just when traders and investors thought that they had seen it all, in terms of losses, the coin made a further dip. At the time of this writing, CoinMarketCap data showed that the flagship cryptocurrency was trading at $100,073.60, down 3.07% over 24 hours.

This discouraging outlook has affected many Bitcoin treasury firms, as their previously unrealized profits have turned into losses. More significantly, altcoin treasury firms have also been impacted by the current market outlook.

On October 20, Evernorth Holdings Inc. announced it would go public via a SPAC merger with Armada Acquisition Corp II. The primary reason for the merger is the establishment of the world’s largest institutional XRP treasury.

Both companies’ boards unanimously approved the transaction, which is expected to generate over $1 billion in gross proceeds.

Four days later, Evernorth had secured 261 million XRP, and by the end of that week, the company had accumulated $1 billion worth of XRP to build a dedicated treasury.

Ordinarily, this stash would have turned a profit, but not in the current market.

Strategy, Metaplanet, and BitMine Are Also Struggling

Strategy, which boasts of the largest cryptocurrency corporate Bitcoin holding, is also affected by the situation.

CryptoQuant reported that its MSTR shares have declined by approximately 53%. This recent plunge has taken the shares to the bottom of their lower band, even though Strategy holds 641,205 BTC.

Asian financial firm Metaplanet also has about $120 million in unrealized losses, while its share price has plunged 80% from its ATH.

For Ethereum Treasury firm BitMine, it has roughly $2.1 billion in unrealized losses. Interestingly, it had recently added more ETH to its portfolio.

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