Cryptocurrency mining firm Bitmine faces an $8.8 billion paper loss on its Ethereum holdings as the token trades 60% below its average cost. Major institutions like Morgan Stanley increased their ETH exposure despite the downturn, while market data reveals mixed sentiment with rising short positions and significant whale buying.
Bitmine Immersion Technologies is confronting a substantial unrealized loss of approximately $8.8 billion on its Ethereum treasury. This paper loss occurred as Ether’s price dropped 60% below the company’s average acquisition cost of $3,843 per token, according to tracker Bitminetracker.
Other corporate holders, including SharpLink Gaming and The Ether Machine, have reported unrealized losses of $1.4 billion and $948 million respectively. The situation places corporate ETH strategies under intense market scrutiny.
Despite the price decline, major institutions raised their stakes in the fourth quarter of 2025. Shareholders such as Morgan Stanley, Ark Investment Management, and BlackRock increased their Ethereum holdings.
Market data shows a conflicted sentiment among different investor classes. ‘Smart money’ traders have increased their net short position on ETH by $67 million in the past day, per data from Nansen.
Conversely, whale wallets purchased $44 million worth of ETH via 41 addresses last week. These large-scale purchases signal ongoing confidence in the asset’s underlying technology.
Analysts at 10x Research noted the critical juncture, stating on social media, “Ethereum at a Breaking Point: Cyclical Bottom — or Structural Impairment?” According to their analysis, Bitmine’s paper losses now exceed the roughly $8.0 billion initially lost by FTX customers.
Sustained unrealized losses could pressure companies to reassess treasury allocations. This potential reassessment might lead to initial steps of a broader market selloff.
