Digital asset treasury companies like Evernorth and BitMine are facing heavy losses due to the month-long slide in crypto prices. Evernorth has seen $78 million in unrealized losses on its XRP position, while BitMine is sitting on $2.1 billion in unrealized losses tied to its Ether reserves. Strategy’s stock has dropped 26% as Bitcoin’s price slumps, despite holding a sizable unrealized gain on its Bitcoin reserves. Analysts warn that the market value of digital asset treasury companies is increasingly tied to the performance of their underlying crypto holdings, with some comparing the situation to the dot-com bubble of the early 2000s. Ray Youssef predicts that most digital asset treasuries will fade out or collapse as market realities set in.

Read more at Cointelegraph: Evernorth Losses Spotlight Digital Asset Treasury Risks