Bitmine's ETH strategy at risk amid $3.7B unrealized loss, analysis shows

Nasdaq-listed Bitmine, which has concentrated its investments in Ethereum, is facing approximately $3.7 billion in unrealized losses, placing its ETH accumulation strategy in jeopardy, according to an analysis by 10x Research. Cointelegraph reported that 10x Research noted the current price of Ethereum is about $1,000 below Bitmine's average purchase price of $4,051. The analysis explained that the recent market downturn has led to a sharp drop in the market-to-net asset value ratio (mNAV) for Digital Asset Treasury (DAT) companies. This makes it difficult to attract new investors and leaves many existing shareholders unable to exit without incurring losses. Bitmine's mNAV has fallen to 0.77, with its diluted mNAV at 0.92. An mNAV above 1 is necessary to raise capital through new share issuances for further cryptocurrency purchases. Other major DAT firms, including Strategy (MSTR), Metaplanet, and SharpLink Gaming, are experiencing similar mNAV declines.