A growing number of crypto-focused companies are finding themselves trapped in deep paper losses after the recent market downturn, according to new findings by CryptoQuant.
The firm’s latest analysis paints a sobering picture of corporate exposure — with some of the largest holders of Bitcoin and Ethereum now staring at billions in unrealized damage.
Once viewed as a badge of confidence in digital assets, large crypto holdings are now becoming a financial liability for several public firms. Evernorth’s Odaily portfolio, established only a few weeks ago, has already sunk by nearly $78 million, showing how unforgiving this market can be.
Elsewhere, Strategy’s shares — long used as a bellwether for corporate Bitcoin exposure — have tumbled over 50%, now trading precariously close to their $221 per-share average BTC entry level.
Meanwhile, Metaplanet, one of Japan’s most aggressive corporate Bitcoin buyers, is sitting on an estimated $120 million in paper losses after purchasing nearly a third of its holdings at $106,000 per coin. The company’s stock has plummeted around 80% from its highs.
The damage isn’t limited to Bitcoin. Bitmine, which expanded heavily into Ethereum following the October 10 crash, has seen its strategy backfire. Its addition of 442,000 ETH has turned into a staggering $2.1 billion unrealized loss, positioning the miner among the most exposed players in the sector.
Analysts at CryptoQuant noted that the scale of these paper losses reveals how institutional crypto portfolios remain tightly correlated to market cycles — and how poorly timed accumulation can erase months of perceived progress.
CryptoQuant said the overarching trend among institutional investors is no longer accumulation but containment. Instead of adding exposure, companies are reassessing liquidity, cutting leverage, and bracing for prolonged volatility.
“The market’s defensive tone reflects a desire to survive the downturn rather than profit from it,” the firm stated, describing the environment as one defined by “tight capital and cautious optimism.”
For now, balance sheets across the crypto finance sector remain under pressure — and the optimism that once drove corporations to embrace digital assets is giving way to a more sober realization: in crypto, conviction alone doesn’t protect against the math of the market.
