**Bitcoin, Ethereum, and XRP Treasuries Face Billions in Losses After October’s Market Crash**
The recent downturn in the crypto market has caused major losses for companies holding Bitcoin (BTC), Ethereum (ETH), and XRP in their treasuries. As prices plummeted through October, many firms saw their valuations drop significantly. With growing concerns about the sustainability of their strategies, the big question arises: will Wall Street choose to hold or sell these struggling digital assets?
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### Losses Across Major Digital Asset Treasuries
October’s sharp market decline severely affected companies heavily invested in Bitcoin, Ethereum, and XRP. Firms that incorporated these assets as part of their treasury strategies now face deep unrealized losses.
For example, investment firm Evernorth, which invested nearly $947 million in XRP, reported a loss of about $78 million, bringing the value of its XRP holdings down to $868 million. Bitcoin and Ethereum treasury strategies have also struggled.
One company, Strategy, has seen its stock price fall more than 50%, placing it at the low end of its valuation range relative to Bitcoin. Similarly, Japan-based firm Metaplanet has lost approximately $120 million on its crypto investments, with its stock price dropping nearly 80% from its peak — a stark illustration of the market’s severity.
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### Crypto Treasury Firms and Overleveraging Concerns
Many experts are raising alarms about possible overleveraging by some crypto treasury firms (Digital Asset Treasuries or DATs). Blockchain expert Omid Malekan pointed out that several firms established digital asset treasuries with unrealistic financial expectations.
Malekan suggested that the primary focus for some companies was to “get rich quick” rather than ensuring long-term financial stability. He also noted that numerous founders and venture capitalists placed themselves on these firms’ boards, creating conflicts of interest.
This dynamic, according to Malekan, encouraged rapid selling of assets, which added further selling pressure to the market. “By releasing their unlocked tokens into the market, they accelerated price declines and shattered investor trust,” he said. Such behavior undoubtedly contributed to the market’s overall instability during the recent downturn.
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### Will Wall Street Hold or Sell These Digital Assets?
As the crypto market starts its recovery from October’s losses, institutional investors face a critical decision: should they hold or sell their digital assets?
Opinions vary. Some analysts warn that these assets may have lost much of their value for now, while others believe Wall Street might hold on, anticipating a potential rebound.
Notably, BitMine, a firm with substantial Ethereum exposure, added 442,000 ETH to its reserves following the market crash. Despite this move, BitMine has reported an estimated $2.1 billion in unrealized losses.
These dynamics make it challenging for investors to predict whether the market will recover or continue declining. For many firms with significant crypto exposure, the decision to hold or sell will be crucial in shaping their financial futures.
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### The Crypto ETF Standard and Future Prospects
The potential introduction of a crypto exchange-traded fund (ETF) has sparked debate about its impact on digital asset treasuries. Experts like ETF analyst Nate Geraci suggest that the new ETF standard could influence the valuations of firms holding large crypto reserves.
As these companies face ongoing market pressure, the success or failure of the ETF could become a determining factor in their future strategies.
As the crypto space continues to evolve rapidly, companies will have to decide whether to retain their crypto assets or divest to minimize losses. Wall Street’s response in the coming months could significantly shape the trajectory of these companies and the broader crypto market.
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*Stay tuned for more updates on the crypto market and institutional investment trends.*
https://coincentral.com/crypto-crash-slashes-btc-eth-xrp-treasury-valuations-will-wall-street-sell/
