BitMine Faces $3.7B Loss on Ethereum Holdings

BitMine, the world’s largest corporate Ethereum holder, reports a floating loss of $3.7 billion as its Ethereum investments face mounting financial challenges, according to a 10x Research report.

The financial distress highlights risks associated with digital asset treasuries, potentially influencing retail investor confidence and impacting Ethereum’s market ecosystem significantly.

BitMine’s $3.7B Loss Amidst Ethereum Price Drop

BitMine holds 3.56 million Ethereum, equivalent to almost 3% of the total supply, accumulating an estimated loss of $3.7 billion relative to its average cost basis of approximately $4,051 per Ethereum. The company’s aggressive purchasing strategy brought intense scrutiny as Ethereum prices weakened amid broader market challenges.

In response to the situation, BitMine’s average cost basis for Ethereum, combined with market price decreases, underscores the volatility within digital assets. The report from 10x Research notes that the NAV of corporate treasuries, including BitMine’s, poses challenges for shareholder liquidity.

Market responses include major shareholders like Peter Thiel’s Founders Fund halving its stake in BitMine, while ARK Invest and JPMorgan reportedly increased their positions. Chairman Thomas Lee maintains BitMine’s bullish stance on Ethereum, attributing price declines to “liquidity drainage” from a market maker retrenchment. In his own words:

“Our bullish stance on Ethereum remains intact despite current market conditions, which we attribute largely to liquidity drainage caused by recent market maker activities.”

Ethereum’s Price Volatility and Its Ripple Effects

Did you know? When BitMine’s Chairman likened its situation to “quantitative tightening” for crypto, it echoed the 2022 market dynamics where several digital asset treasuries faced similar distress, impacting valuation and investor sentiment.

As of November 20, 2025, Ethereum is priced at $3,016.47 with a market cap of $364.08 billion. The cryptocurrency commands an 11.66% market dominance. Over the previous 90 days, its price decreased by 29.66%, according to CoinMarketCap data. Recent trading volumes surged, with $38.48 billion in the past 24 hours, marking a 16.73% increase.

From the Coincu research team, BitMine’s scenario could lead to broader market stress, affecting investor sentiment and institutional demand. Examination of possible regulatory interventions is necessary, as market NAV discounts and treasury strategies raise questions for future financial stability.