Ripple-Backed Evernorth Now Down $78 Million as XRP Price Plunges

According to cryptocurrency analytics platform CryptoQuant, XRP treasury firm Evernorth is already underwater. The firm's stake is now down by $78 million less than three weeks after the initial entry. 

Earlier today, the XRP token plunged to an intraday low of $2.16. The token is now down a whopping 40.1% from its record high.  

On Nov. 4, Evernorth announced that it had purchased an additional $214 million worth of XRP. 

Evernorth positions itself as a "digital-asset treasury" (DAT) built to hold XRP on behalf of investors and corporations. The company has pledged to acquire over 473 million XRP tokens, raising a total of $1 billion via a merger with Armada Acquisition Corp II. 

The company has secured funding from the likes of Ripple and Japanese financial giant SBI Holdings. 

According to CryptoQuant, Evernorth has already purchased 388.7 million XRP for roughly $947 million. However, it is now sitting on an unrealized loss of $79 million. 

Has DAT bubble burst?  

Meanwhile, Strategy’s stock is down 53%. According to CryptoQuant, the stock is now trading right at the lower band ($221) of the MSTR Price Bands, which are based on its Bitcoin holdings.

Tokyo-based Metaplanet, which stole the show with massive gains last year, is now sitting on a substantial unrealized loss of $120 million. The stock is now down a whopping 80% from its record peak. 

Tom Lee's Bitmine, however, is so far emerging as the biggest money incinerator with an unrealized loss of $2.1 billion. New York-based investment management firm Kerrisdale Capital must feel vindicated after shorting the Ethereum treasury giant in early October.