Headline: Evernorth’s massive XRP bet becomes 2025’s high-stakes institutional stress test Evernorth’s decision to build one of the largest known corporate XRP treasuries has emerged as one of 2025’s most closely watched institutional crypto experiments. What began as a concentrated, high-conviction accumulation plan has unfolded into a real-world test of timing, volatility management and the resilience of balance-sheet positioning in a market that punishes short-term optimism. The build-up - Between late October and late December 2025, Evernorth accumulated roughly 388.7 million XRP, deploying capital aggressively as XRP climbed in a strong uptrend. - At its peak the stake was worth about $947 million and briefly showed a paper gain near $71 million, validating the upside potential of institutional-scale XRP exposure while momentum held. The reversal - Momentum faded. XRP slid from roughly $2.60 toward the $1.80 range, driving Evernorth’s treasury decisively below its aggregate cost basis. - By late December the unrealized mark-to-market loss had widened to roughly $220–225 million, based on on-chain and price-based estimates. - Crucially, these are unrealized losses: Evernorth has not liquidated the position. The situation reflects mark-to-market recalibration as price volatility intersected with a highly concentrated exposure. A chart shared by market watcher JA_Maartun shows the portfolio moving from early profit zones into sustained loss territory as the price trend weakened. What this reveals about institutional crypto treasuries - Concentration risk: Centering a treasury strategy on a single, volatile asset amplifies sensitivity to short- and medium-term swings. Even disciplined accumulation can be overwhelmed by poor market timing. - Channeling exposure: The price decline did not stop institutional interest in XRP-linked products. Reported inflows into XRP ETFs continued, pushing ETF-held XRP value to about $1.25 billion. That divergence implies some institutions prefer structured vehicles (ETFs) to direct balance-sheet holdings, which can mitigate the operational and volatility risks of concentrated custody. - Mark-to-market reality: Large, transparent positions invite scrutiny. Unrealized losses don’t equal realized failure, but they do reset risk and liquidity expectations for treasury managers. Bottom line Evernorth’s XRP treasury produced a sobering snapshot of the trade-offs inherent to large, single-asset crypto allocations: the potential for meaningful upside when momentum holds, and the risk of steep paper losses when it doesn’t. Whether this episode is later judged a strategic mistake or a patient, long-duration bet depends on the firm’s willingness to endure prolonged drawdowns without forced exits — and on how XRP’s next price cycles play out. Read more AI-generated news on: undefined/news

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