BitMine Faces Over $4 Billion in Unrealized Loss as Digital Asset Treasury Model Faces Scrutiny

BitMine Immersion Technologies, the world's largest corporate holder of Ethereum (ETH), is currently facing approximately $4.18 billion in unrealized losses following a significant decline in Ethereum's price, which has dropped 27.4% in the past month to trade below $3,000. The company holds nearly 3.6 million ETH, representing about 2.97% of the total supply. This situation highlights broader concerns about the sustainability of the digital asset treasury (DAT) business model, as evidenced by its market-to-net-asset-value (mNAV) ratio being below 1. Research firm 10x Research described this as a "Hotel California scenario," where shareholders become trapped as premiums shrink, making it nearly impossible to attract new investors while existing ones face massive losses. BitMine's stock (BMNR) has fallen nearly 50% in the last month, underperforming ETH's decline. Despite the losses, on-chain data shows BitMine has continued to purchase ETH, including a recent acquisition of over 110,000 ETH.

(Source：BeInCrypto)