Evernorth’s $225M XRP Treasury Loss in 2025: A Crypto Cautionary Tale

Evernorth, a company that built one of the largest known XRP treasuries in 2025, has become the poster child for the high-stakes gamble of institutional crypto investment. What began as a bold bet on XRP’s potential with early gains has spiraled into a brutal lesson on volatility, with unrealized losses now stacking up to a staggering $220–225 million. This saga of breathtaking highs and savage lows offers critical insights into the risks and rewards of corporate crypto strategies.

• Evernorth amassed 388.7 million XRP between October and December 2025, peaking at a $947 million valuation.
• XRP’s price crash from $2.60 to $1.80 resulted in unrealized losses of $220–225 million by late December.
• Despite the spot price drop, XRP-linked exchange-traded products (ETPs) hold $1.25 billion, showing sustained institutional interest.

Evernorth’s XRP Bet: The Meteoric Rise

Let’s rewind to late October 2025, when Evernorth started stacking XRP with the ferocity of a bull in a china shop. By the end of December, they had accumulated a jaw-dropping 388.7 million tokens. At XRP’s peak price of $2.60, their treasury was valued at nearly $947 million, racking up early paper gains of $71 million. For a fleeting moment, it seemed like Evernorth had mastered the art of timing the crypto market—a notoriously unpredictable beast. Their strategy looked like a stroke of genius, capitalizing on altcoin optimism and positioning them as a trailblazer in institutional crypto exposure. But as any seasoned trader knows, the market giveth, and the market taketh away—often faster than a magician’s rabbit vanishing.

The Brutal Fall: $225M in Unrealized Losses

By late December 2025, the fairy tale unraveled. XRP’s price plummeted to $1.80, slashing the value of Evernorth’s treasury and leaving them with unrealized losses of $220 to $225 million. That’s a quarter-billion dollars evaporated on paper in mere weeks—a gut punch that would make even the hardest diamond hands flinch. For clarity, “unrealized losses” means they haven’t sold their XRP holdings, so the loss isn’t cash in the bank—it’s the difference between what they paid and the current market value. If XRP rebounds, those losses could shrink or disappear. If it doesn’t, they’re staring down a financial abyss until they either sell at a loss or the market turns. This is the ultimate test of endurance, or as the crypto crowd calls it, “HODL”—a meme-turned-mantra meaning “Hold On for Dear Life,” urging investors to cling to their assets through volatility.

The term “diamond hands” also comes into play here, referring to the resolve to hold an investment despite mounting losses. Evernorth’s leadership better have nerves of steel, because panic-selling at the bottom would turn this paper disaster into a real one. Market watcher JA_Maartun shared a chart that brutally illustrated this downfall, plotting XRP’s weakening price against Evernorth’s treasury performance as detailed in a recent analysis of the largest XRP treasury holder. It’s not just a rough patch—it’s a neon warning sign about the perils of playing in a market this unforgiving.

Market Disconnect: XRP ETPs vs. Spot Price Crash

Here’s where things get curious—and a bit baffling. While XRP’s spot price bled out in late 2025, dropping to $1.80, institutional interest in the altcoin didn’t collapse. XRP-linked exchange-traded products (ETPs)—essentially crypto ETFs that allow investors to gain exposure without directly owning the asset—continued to attract steady inflows. By December’s end, the total value of XRP held in these ETPs hit $1.25 billion. This signals a stark disconnect: the spot market tanks, yet big players keep pouring money into structured financial vehicles. It’s as if they’re saying, “We’re still bullish on XRP’s story, but we’re not reckless enough to hold it raw like Evernorth did.”

For those new to the space, ETPs offer a safer bet compared to direct holdings. They often come with diversification, regulatory oversight in some jurisdictions, and a buffer against the wild swings of crypto spot prices. Evernorth, by contrast, dove headfirst into direct ownership, exposing themselves to every brutal price swing. This contrast highlights a maturing crypto market where structured products might be the smarter play for risk-averse institutions, even as XRP volatility in 2025 continues to punish the bold.

Concentration Risk: A Reckless Gamble?

Let’s not mince words: Evernorth’s all-in XRP strategy isn’t just risky—it’s borderline reckless in a market this savage. Concentration risk, the danger of investing heavily in a single asset, leaves an investor painfully vulnerable to massive losses if that asset’s value tanks. Unlike Bitcoin, which despite its own volatility has carved out a reputation as a digital store of value, XRP carries unique baggage. Tied to Ripple and its long-standing regulatory battles (more on that shortly), XRP is an altcoin with a passionate following and genuine utility in cross-border payments—but also a lightning rod for controversy and price swings that can obliterate portfolios overnight. Evernorth didn’t just misjudge market timing; they put all their eggs in one very fragile basket, ignoring diversification as a survival tactic in crypto.

To add context, XRP’s history is intertwined with Ripple’s legal woes, particularly the ongoing SEC lawsuit in the U.S. over whether XRP qualifies as a security. Assuming these battles persist into 2025, or even if new global regulations emerge, the uncertainty continues to weigh on XRP’s price and perception. Evernorth’s rationale for choosing XRP over other assets remains unclear—were they banking on Ripple’s partnerships with financial institutions, the promise of faster cross-border transactions, or pure speculative hype? Whatever the reasoning, their exposure to a single volatile asset has turned their treasury into a case study of what not to do.

Playing Devil’s Advocate: Down, But Not Out?

Before we write off Evernorth’s strategy as a total bust, let’s consider the other side. Are they truly down for the count, or just playing a long game that hasn’t unfolded yet? Crypto treasury strategies often look like madness in the short term but can yield massive returns if the asset’s adoption curve kicks into high gear. Think of MicroStrategy, a company that’s weathered Bitcoin’s brutal drawdowns since 2020, sticking to their conviction and often emerging stronger as prices recovered. Could Evernorth have mitigated risk by leaning on Bitcoin’s relative stability instead of XRP’s speculative upside? Perhaps. But if XRP secures a major banking partnership in 2026, pushing prices past $3, Evernorth’s current losses could flip into a windfall. That’s a big “if” in a cutthroat market, but it’s not impossible.

The flip side is grim: prolonged stagnation or further drops could turn this into a corporate catastrophe. Success for Evernorth isn’t about quarterly snapshots—it’s about enduring crypto’s inevitable gut punches without being forced to sell at the bottom. If they panic and exit during a trough, the irony will sting worse than the loss itself. Their gamble, win or lose, does signal something bigger: institutional players are willing to experiment with altcoins beyond Bitcoin, even if the results are messy as hell.

Lessons for Crypto Treasuries—and Retail Investors

Zooming out, Evernorth’s stumble forces us to rethink how “success” is defined in crypto treasury plays. Is it raw profit and loss, or is it about signaling unwavering belief in decentralized tech? Their XRP bet underscores a growing trend of corporate experimentation with altcoins, but it also screams the need for caution. For Bitcoin maximalists like myself, it’s easy to smirk at XRP’s struggles and preach sticking to the king of crypto. Yet, I’ll admit altcoins like XRP fill niches Bitcoin doesn’t touch—especially in payments and cross-border use cases where speed and cost matter. The financial revolution isn’t a one-coin show, even if I’d rather see everyone stacking sats over chasing altcoin pumps.

For the average retail trader or crypto enthusiast, Evernorth’s saga hits closer to home than you might think. Imagine waking up to see a huge chunk of your portfolio vanish overnight because you went all-in on a single shiny altcoin. The lesson is painfully simple: don’t bet the farm, no matter how convincing the hype. Diversification isn’t just corporate jargon—it’s a lifeline. And for companies eyeing crypto treasuries, Evernorth’s pain suggests structured products like ETPs might be the saner path over raw exposure. If you’re curious about safer strategies, our deep dive into Bitcoin’s role in corporate portfolios offers a contrast to this altcoin debacle.

What’s Next for Evernorth and Institutional Crypto?

Evernorth’s journey is far from over, and the crypto space thrives on unpredictability. Will they diversify their holdings to spread the risk, double down on XRP in a show of defiance, or cut their losses and exit? Their next move could shape how other institutions approach crypto in 2026 and beyond. More broadly, this high-stakes experiment—even if it crashes and burns—pushes the boundaries of financial innovation. It’s a messy, painful step toward effective accelerationism, where bold risks drive progress in decentralizing money, even when they blow up in your face. Evernorth better brace for more chaos, because this market doesn’t care about balance sheets or good intentions—it rewards resilience and punishes recklessness without mercy.

Key Takeaways and Burning Questions on Evernorth’s XRP Treasury

• What’s the current state of Evernorth’s XRP holdings in 2025?
  They hold 388.7 million XRP, once valued at $947 million, now down to unrealized losses of $220–225 million after XRP’s price crashed to $1.80.
• Has Evernorth’s crypto treasury strategy failed completely?
  Not necessarily—since the losses are unrealized, their long-term success hinges on holding through volatility and banking on a price recovery for XRP.
• Why does institutional interest in XRP persist despite the 2025 price crash?
  XRP-linked ETPs hold $1.25 billion, showing big players prefer structured exposure to manage risks over direct holdings like Evernorth’s gamble.
• What’s the biggest lesson from Evernorth’s XRP treasury for crypto investors?
  Concentration risk in a single volatile asset like XRP can lead to catastrophic losses; diversification or structured products are often safer bets for both institutions and retail traders.
• How does XRP’s volatility compare to Bitcoin for treasury strategies?
  XRP carries higher speculative risk and regulatory uncertainty compared to Bitcoin’s more established role as a digital store of value, making it a dicier choice for corporate treasuries.