Financial-strategy companies hit as virtual asset market declines

Suehyeon Lee

Summary

It reported that the recent month-long decline in virtual asset prices has caused significant losses to financial-strategy companies.
In particular, Evernos, which purchased XRP, recorded approximately $78 million in unrealized losses, and MicroStrategy (MSTR)'s stock also fell more than 26%.
Also, Bitmain has recorded approximately $2.1 billion in unrealized losses on its Ethereum holdings and reportedly purchased more than 565,000 Ethereum just last month.

A month-long decline in virtual asset (cryptocurrency) prices is directly hitting financial-strategy companies that hold large amounts of virtual assets.

On the 8th (local time), Cointelegraph cited CryptoQuant data and reported, "Financial firms that have accumulated large amounts of digital assets are suffering heavy losses during the market correction."

In particular, Evernos, which purchased XRP, is estimated to have recorded unrealized losses of approximately $78 million (about 113.7 billion won).

The stock of MicroStrategy (ticker MSTR), known for its Bitcoin-holding strategy, also fell more than 26% in a month. According to CryptoQuant, MSTR's share price has fallen 53% from its all-time high. However, MicroStrategy's average Bitcoin purchase price is around $74,000, so it appears to be maintaining substantial unrealized gains on its Bitcoin holdings.

Meanwhile, Bitmain, which holds the most Ethereum, is understood to be recording approximately $2.1 billion in unrealized losses on its Ethereum holdings. Bitmain currently holds about 3.4 million Ethereum and reportedly purchased more than 565,000 last month alone.

BTC

ETH

XRP