BitMine Immersion Sitting on $4B Loss on Ether Bet as Analyst Warns of Structural issues

BitMine Immersion (BMNR), the largest Ethereum-focused Digital Asset Treasury (DAT) firm led by Thomas Lee, is reportedly sitting on over $4 billion in unrealized losses following a 45% decline in Ether (ETH) prices since August. Despite reporting $328 million in net income for the fiscal year, analyst Markus Thielen of 10x Research warns that BMNR and similar DATs suffer from deep structural problems. These issues include high embedded fees extracted by complex layered entities, leadership compensation potentially reaching $157 million over ten years, and unappealing staking yields (around 2.9% gross) that are lower than risk-free money market funds after costs. Thielen cautions that as the net asset value (NAV) premium collapses, shareholders risk being trapped in these structures, likening the situation to a "Hotel California scenario."

(Source：CoinDesk)