Bitmine Ethereum Treasury Company incurred a loss of 3.7 Billion Dollar.

Source: BTCHaber Original Title: Heavy Loss from Ether Treasure Company Bitmine Original Link: https://www.btchaber.com/ether-hazine-sirketi-bitminedan-yuklu-zarar/ Digital asset treasury companies have once again become a topic of discussion due to the cryptocurrency market bleeding significantly over the last one and a half months. According to analyses, MicroStrategy investors have had to absorb a net asset value (NAV) contraction of approximately $20 billion since the company started its Bitcoin purchases. A significant portion of these losses stemmed from the accumulation of BTC purchased at high prices during the period covering November to December 2024.

3.7 Billion Dollar Loss from Bitmine

A similar pressure is observed in Ethereum-focused DAT structures. According to the 10xResearch study, Bitmine has recorded a loss of over 1,000 dollars per ETH with the decline in ETH prices. This decline results in an unrealized loss of approximately 3.7 billion dollars on the company's balance sheet. In the analysis, this situation is defined as a structure where the premium quickly dropped to zero against the (NAV price difference) and investors could not exit without losses.

The Value of Bitmine's ETH Assets Exceeds 10 Billion Dollars

The latest publicly disclosed data shows that the Ethereum treasury company Bitmine holds 3.56 million Ether (ETH). Considering that the ETH price was trading at around $3,015 at the time of writing, the current value of the company's portfolio is approximately $10.74 billion. The sharp decline in prices explains the billions of dollars in unrealized losses mentioned in the report for this massive asset position.

More Expensive Compared to ETFs

One of the main criticisms of DAT structures is the fee mechanism. The 10xResearch report noted that, unlike ETFs that operate transparently, at low cost, and very close to NAV, digital asset treasury companies are tested with additional costs due to complex and hedge fund-like fees. The report pointed out that many investors often do not notice these embedded costs when compared to a financial institution that charges only a 0.25% management fee for Bitcoin and Ethereum ETFs.

If Approval Comes for Ethereum Staking

According to the analysis, a financial institution, which is an asset management giant, applying for a staking feature in an Ethereum ETF is also increasing pressure on DAT models. This step, aimed at providing a low-cost source of returns, is expected to lead to further questioning of the sustainability of DAT economies.

Tom Lee, the head of Bitmine, stated that the recent weakness observed in the crypto market could be due to a gap in the balance sheets of one or more market makers. Lee suggested that the “sharks” taking advantage of this situation were trying to trigger liquidations to push the BTC price down. However, Lee emphasized that this was merely a short-term pain and that Wall Street's vision built on Ethereum had not changed.