Digital Asset Treasury Selling Near Exhaustion as BitMine Deepens Ether Bet

B. Riley has identified signs of a potential rebound in digital asset treasuries after a period of declining performance. Although companies in the sector reported losses in the past week, BitMine Immersion Technologies (BMNR) has notably increased its ether holdings to 11.2 ethers per 1,000 shares, significantly higher than the 4.0 average of its peers. The report indicates that digital asset treasuries underperformed tokens such as Bitcoin and Solana for the third consecutive week. However, the easing of selling pressure, along with improving macroeconomic conditions and expectations of a resolution to the U.S. government shutdown, might spur recovery in the sector. Notably, short sellers have begun to cover their positions, which the analysts view as a potential setup for recovery as corporate digital asset deployments remain muted. Despite the drop in median market net asset values, valuations are deemed attractive due to the discounts on crypto holdings.

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