Ethereum fell over 27% this month, with BitMine, the company holding the largest ETH holdings, facing over 4 billion USD in unrealized losses.

As Ethereum has fallen by more than 27% in a month, with trading prices dropping below $3000, BitMine is facing over $4 billion in unrealized losses. This massive loss is not an isolated incident; it reflects a deeper systemic crisis sweeping across the entire digital asset (DAT) industry, which is teetering due to the volatility on which it relies.

BitMine was once hailed as the Berkshire Hathaway of the digital asset world, envisioning the locking of 5% of the circulating supply of Ethereum. Its core strategy is to convert the company's balance sheet into a long-term, high-confidence investment in blockchain network infrastructure. Today, this ambitious vision collides with the harsh reality of the market.

BitMine currently holds nearly 3.6 million Ether, accounting for about 2.97% of the circulating supply of Ethereum. However, its balance sheet shows significant pressure. The value of its holdings has plummeted from a peak of over $14 billion to less than $10 billion, with estimated paper losses ranging from $3.7 billion to $4.18 billion, depending on different valuation methods. Independent analysis from 10x Research indicates that the company loses approximately $1,000 in actual value for each Ether it purchases.

For a standard diversified company, such losses may be bearable. But for a pure DAT company, whose core or even sole objective is to accumulate and hold cryptocurrencies, the impact will be critical.

BitMine is not an isolated case. Data from Capriole Investments shows that major ETH asset management firms recorded negative returns of 25% to 48% on their core holdings. Companies like SharpLink and The Ether Machine have seen their holdings drop by as much as 80% from annual highs. (CryptoSlate)