Bitmine’s Unrealized Losses Hit $4.1 Billion As ETH Falls Below 11% Today

BitMine Immersion Technologies is facing a steep $4.1 billion in unrealized losses following Ethereum’s ongoing downtrend, which dropped the second-largest cryptocurrency by market capitalization below $3,000 support level. Bitmine is the largest corporate holder of Ethereum, holding 3.56 million ETH coins bought at an average price of $4,051 each. Ethereum’s drop below $2,800 has reduced the market value of Bitwise’s ETH holdings, but the actual per-ETH loss depends on the firm’s purchase price.

This market volatility underscores how crypto price swings directly affect digital asset treasury firms. At the time of the report, the estimated unrealized loss suffered by Bitmine was 3.7 billion, rising to $4.1 billion by the time of writing.  

Bitmine is now down more than $1,000 per ETH, before even accounting for the hefty NAV (net asset value) premium public-market investors had paid on top.  According to our observation, corporate treasury companies are likely to struggle with the current downtrend momentum, especially when shareholders are suffering multi-billion-dollar losses.    

Generally, Digital Asset Treasury (DAT) firms raise capital through equity issuance and deploy funds into digital assets like Bitcoin and Ethereum. The DAT model’s sustainability heavily depends on maintaining strong mNAV ratios. Currently, with Ethereum struggling and sliding down in the market, investor confidence in DAT models like Bitwise and Strategy will fade away. 

Treasury companies would face a hard reality: attracting new retail investors became nearly impossible when existing shareholders were sitting on billions in losses. They noted that when NAV rose, “old” shareholders benefited; when it fell, the damage compounded, a dynamic that DAT investors often underestimated.      

Ethereum is Down by 11% Today- Why is ETH Down?

ETH, the native cryptocurrency of the Ethereum network and the by market capitalization, is down by 11% today, showing significant bearish momentum in the cryptocurrency market. According to the latest market analysis, Ethereum’s current downturn is due to a combination of factors, like significant ETH ETF outflows, broader crypto market downtrend, and failure to hold key support levels around $3,000. 

Ethereum’s 24-hour trading volume surged 43% and reached $54.5 billion, indicating panic exits. Experts say that investors should watch for Bitcoin’s ability to hold $80K support, and a breakdown below that particular point could trigger another drop in Ethereum rally, leading to a continued steep price correction. Crypto analyst Lennaert Snyder reacted to the recent Ethereum price drop and posted on X that ETH had dropped to $2,650 and was heading to daily demand.

He mentioned that, just like Bitcoin, the local trend was still down for Ethereum. He noted that key resistance lay at around $3,200; reclaiming $3,200 would trigger a rally towards approximately $3,530 resistance. He added that the price was also dumping near the ~$2,580 daily support zone and that if the price arrived there, he would stay very sharp for potential longs after reversals.