BitMine Faces $3.7B Loss Amid BlackRock's ETH ETF Introduction

BitMine, the world's largest holder of corporate Ethereum, is grappling with a staggering $3.7 billion paper loss as its average cost basis of $4,051 per ETH falls significantly. This decline has brought the firm's mNAV (market Net Asset Value) ratios to critical levels, with a basic mNAV of 0.77 and a diluted mNAV of 0.92, posing challenges in attracting new retail investors. Existing investors are reportedly feeling 'trapped' due to the decline in asset valuations and complex fee structures similar to hedge funds. The situation is compounded by BlackRock's upcoming staked Ether ETF, set to offer a lower-cost yield-generating option, potentially siphoning off investor interest from digital asset treasury firms like DATs. Analysts express concerns that the introduction of this ETF could intensify scrutiny on the business models of DATs, as investors may prefer BlackRock's 0.25% management fee over the hidden costs associated with digital asset treasuries. Established asset managers such as REX-Osprey and Grayscale have already launched similar funds, further complicating the landscape for DATs.

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