BitMine Faces Significant Losses on Ethereum Holdings

According to PANews, a recent report by 10x Research reveals that BitMine, the largest corporate holder of Ethereum globally, is experiencing substantial losses. The report indicates that BitMine is losing $1,000 per Ethereum compared to its average cost, resulting in a total unrealized loss of $3.7 billion on its Ethereum holdings. The report highlights that the decline in the net asset value (NAV) of corporate crypto treasury companies is making it challenging to attract new retail investors. Many existing shareholders are effectively 'trapped' unless they sell at significantly reduced prices. As premiums inevitably drop to zero, investors may find themselves stuck in this structure, unable to exit without incurring substantial losses. Unlike ETFs, digital asset treasury companies (DATs) have complex, opaque, and often hedge fund-like fee structures that quietly erode returns. Data from Bitminetracker shows that BitMine's basic mNAV is 0.77, with a diluted mNAV of 0.92. BitMine holds approximately 3.56 million ETH, valued at around $10.7 billion, accounting for 2.94% of the total Ethereum supply. The company's average cost basis is $4,051 per ETH. Other digital asset treasury companies, including Strategy, Bitmine, Metaplanet, Sharplink Gaming, Upexi, and DeFi Development Corp, have also seen significant declines in their mNAV.