BitMine faces unrealized loss of more than $4 billion as its digital asset treasury model comes under scrutiny

BitMine Immersion Technologies, the largest Ethereum (ETH) holder in the world, is now facing more than $4 billion in unrealized losses on its ETH holdings.

The company’s decline reflects broader turmoil for digital asset (DAT) companies, raising new questions about the sustainability of this business model.

BitMine’s growing losses are creating a “Hotel California” scenario.

In a recent disclosure published earlier this week, BitMine revealed that it has about 3.6 million ETH, Equivalent to about 2.97% of the Ethereum supply. The company is approaching its long-term goal of accumulating 5% of all ETH.

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In any case, the treasury of the company feels more and more the pressure from the sharp drop in the price of the asset. Ethereum has fallen by 27.4% in the past month, It is now trading at less than $3,000. At the same time, BitMine’s balance sheet reflects this decline.

Recent figures show that the company’s ETH stack is now worth just under $10 billion, putting BitMine’s unrealized losses at around $4.18 billion.

According to data BitmineTrackerThe basic report is Market Value to Net Assets (mNAV) The company’s diluted mNAV is 0.73, while its diluted mNAV is 0.88. The research company 10x Research highlighted the effects in a recent post on X (formerly Twitter).

The publication emphasized that changes in NAV tend to reward long-term shareholders when the metric rises, but can magnify losses when it falls – a pattern still overlooked by many investors in digital asset vehicles.

10x Research wrote in Posted by her“Treasuries face a difficult reality: Attracting new retail investors becomes almost impossible when existing shareholders are sitting on billions of losses. When the first inevitably reduces to zero, as is happening now, investors find themselves trapped in the structure, unable to get out without significant damage, a real scenario Hotel California”.

Stress is equally evident in the performance of a company’s stock. Google Finance data shows that the monthly decrease of BMNR is almost double that of ETH, with the share price down 49.8% in the same period.

This discrepancy is not unique to BMNR. Bid multiple times for Bitcoin The same model, record declines that exceed the decline of Bitcoin itself.

Meanwhile, Bitmain is not alone in these challenges. Sharp Link Gaming Company, the second largest corporate holder of ETH, It faces unrealized losses of more than half a billion dollars. He owns 859,853 ETH worth $2.4 billion according to current market prices. The company’s shares, SBET, fell by 35.15% in the past month.

However, data on the chain shows that Bitmain Still actively buying ETH. At the beginning of the month, the company acquired 110,288 ETH. Lens without chain It is also reported With a recent purchase of 17,242 ETH, worth $49.07 million, from FalconX and BitGo.