The prolonged crypto downturn has left a deep mark on digital asset treasury companies, revealing the fragility of a business model built around holding volatile crypto assets on company balance sheets.
Key points to remember:
- Digital asset treasury companies are under severe pressure as the month-long crypto downturn wipes billions in balance sheet value.
- XRP-focused Evernorth recorded $78 million in unrealized losses, while BitMine faces $2.1 billion in paper losses on its Ether holdings.
- Analysts warn that many Treasuries are at risk of collapsing as their market net asset value (mNAV) falls.
Both Bitcoin and Ether have fallen sharply over the past month, and with them, the valuations of companies that rely heavily on these securities for their value.
Evernorth faces $78m unrealized loss amid growing pressure on cash companies
New analysis by on-chain data firm CryptoQuant has highlighted the pressure these companies are facing, citing Evernorth, an XRP-focused treasury, as a key example.
The company reportedly suffered $78 million in unrealized losses on its XRP position just weeks after acquiring the tokens.
Even established giants like Strategy (MSTR), the original Bitcoin cash game, have been hit hard.
Strategy’s stock has fallen 26% over the past month amid Bitcoin’s decline and is now trading more than 50% below its all-time high, according to Google Finance.
Nonetheless, the company remains in the green when it comes to its Bitcoin reserves, with an average cost of around $74,000 per BTC, according to data from BitcoinTreasuries.net.
The pain is not limited to Bitcoin treasures. BitMine, the largest Ether holding company, now bears approximately $2.1 billion in unrealized losses related to its 3.4 million ETH holdings.
The company acquired over 565,000 ETH in the last month alone, increasing its exposure to Ethereum’s price fluctuations.
Bitcoin is under pressure, as are Treasury companies.
Not just those holding BTC, but also altcoin treasures.
Example: Evernorth $XRP stake is already down $78 million in unrealized losses, just 2.5 weeks after entry.
And that’s not all
pic.twitter.com/FX0dQzGAoe
– CryptoQuant.com (@cryptoquant_com) November 7, 2025
The sale reignited debate over the sustainability of digital asset treasury (DAT) companies, companies that reflect Bitcoin’s “digital gold” thesis by holding crypto as a strategic reserve. Analysts have warned that many DATs are facing serious valuation stress as their market net asset value (mNAV) collapses in tandem with crypto prices.
Some venture capital analysts, including those at Breed Capital, say Bitcoin-focused Treasuries could be the most resilient, while others liken the current environment to the dot-com bubble.
Novogratz Claims Treasury Crypto Boom Has Peaked
Michael Novogratz, CEO of Galaxy Digital, believes that the wave of new crypto treasury companies has likely reached its peak, with attention now turning to existing companies that can scale and dominate.
Speaking during Galaxy’s second-quarter earnings conference call, he said: “We’ve probably gone through a peak in treasury company issuance,” signaling a more competitive phase to come.
The rise of treasury-based crypto companies has been fueled by favorable US regulations, with companies like Strategy, GameStop, Trump Media and SharpLink allocating reserves to Bitcoin, Ethereum and other digital assets.
However, Novogratz warned that saturation could make it harder for newcomers to gain traction, especially as Ethereum-focused treasures like BitMine and SharpLink continue to expand.
Retail investors seeking exposure to Bitcoin through public companies like Metaplanet and Michael Saylor’s Strategy have lost approximately $17 billion, according to a new report from 10x Research.
The company said the losses came from share premiums that once valued these companies well above the value of their Bitcoin holdings, premiums that have now evaporated.
The article Crypto Treasuries Take Hit as Month-Long Market Crisis Erodes Balance Sheets appeared first on Cryptonews.
