Crypto: Bitmine Nears $7b In Unrealized Losses As Ether Downturn Pressures...

Ether treasury firms are pressured by the crypto market downturn, as Trend Research was forced to sell $77 million in Ether at a loss, while others are holding through paper losses.

Corporate Ether treasury companies are facing significant paper losses on their holdings after the latest market correction pulled many underwater.

BitMine Immersion Technologies, the largest corporate Ether (ETH) holder, is sitting on $6.95 billion in unrealized losses. Its Ether holdings were acquired at an average price of $3,883 per token, significantly higher than the current $2,240 ETH price.

SharpLink Gaming, the second-largest Ether treasury firm, is facing $1.09 billion in paper losses, after Ether’s price fell below its average cost basis of $3,609, according to the company’s dashboard.

The mounting unrealized losses may test the conviction of Ether treasury companies, making it increasingly difficult to raise funds, as Ether’s correction is leading to a decline in Market Net Asset Value (MNAV). BitMine’s mNAV sank to 1, while SharpLink’s mNAV fell to 0.92.

The mNAV ratio compares a company’s enterprise value to the value of its crypto holdings. An mNAV below 1 makes it more challenging for companies to raise funds by issuing new shares, which may limit their cryptocurrency purchases.

The dynamic may lead to a “brutal pruning” among crypto treasury firms in 2026, when only the best-capitalized players will survive, predicted asset manager Pantera Capital.

Related: BitMine to invest $200M in YouTuber MrBeast’s Beast Industries

Despite the concerns, Ether's current decline remains in line with analysis from Tom Lee, the chairman of BitMine and the co-founder of Fundstrat Global Advisors.

Lee predicted an Ether drawdown to around $1,800 in the first quarter of 2026, before crypto markets would find their footing and rally into year-end, Cointelegraph reported in December.

Source: CoinTelegraph