BitMine, the largest corporate holder of Ethereum, is grappling with a $3.7 billion unrealized loss as the cryptocurrency's price falls below the company's average cost of $4,051 per ETH. According to a 10x Research report, BitMine's holdings of approximately 3.56 million ETH, valued at $10.7 billion, are losing $1,000 per Ethereum. This situation is exacerbating the challenges for digital asset treasuries (DATs), which are struggling with declining net asset values (NAV) and complex fee structures that deter new retail investors.
The report highlights that BitMine's base mNAV is 0.77, with a diluted mNAV of 0.92, indicating a significant erosion in value. This trend is not isolated to BitMine, as other digital asset treasury companies like Strategy, Metaplanet, and DeFi Development Corp are also experiencing similar declines. The opaque fee structures of DATs, unlike ETFs, further complicate the investment landscape, potentially trapping investors unless they sell at a loss.
BitMine Faces $3.7 Billion Unrealized Loss Amid Ethereum Price Drop
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