Ether Giant BitMine Faces $3.7B Loss as mNAV Collapse Traps Investors

Why Corporate Crypto-Treasury Firms Are Facing New Pressure

Concerns are rising over the long-term sustainability of digital-asset treasury companies as BlackRock moves ahead with a new staked Ether ETF that analysts say could directly challenge the economics of corporate crypto-treasury models. These firms, often referred to as DATs, raise capital through equity issuance and deploy those funds into crypto assets—typically BTC or Ether—as part of an accumulation strategy.

But their ability to attract new capital depends heavily on their market net asset value (mNAV). With mNAV ratios falling sharply across major DATs, the model is beginning to strain. According to a Thursday report from 10x Research, BitMine Immersion Technologies—the world’s largest corporate Ether holder—is now sitting on an unrealized loss of about 1,000 dollars per purchased ETH. With a cost basis of 4,051 dollars and a current price near 3,033 dollars, that suggests roughly 3.7 billion dollars in cumulative unrealized losses.

10x Research founder Markus Thielen said this NAV compression leaves many shareholders “trapped” in a structure that cannot be exited without significant loss. He described DATs as offering “a true Hotel California scenario,” arguing that their opaque fee layers and hedge-fund-like structures quietly erode returns over time.

Investor Takeaway

BitMine’s NAV Collapse Highlights Structural fragilenesses

BitMine currently holds about 3.56 million ETH valued at roughly 10.7 billion dollars, representing 2.94 percent of the entire Ether supply. Despite this massive treasury, its valuation metrics have deteriorated. BitMine’s basic mNAV ratio stands at 0.77, while its diluted mNAV sits at 0.92, according to Bitminetracker data.

An mNAV above 1 typically allows a company to raise fresh capital at a premium, issuing stock at a higher valuation than the underlying crypto assets. When mNAV falls below 1, that mechanism breaks, significantly limiting the company’s ability to fund further accumulation.

Several other DATs—including Strategy, Metaplanet, Sharplink Gaming, Upexi, and Bitmine—have experienced similar declines in NAV multiples as crypto prices fragileened and equity valuations compressed.

The lower these ratios fall, the more hard it becomes for DATs to convince new investors to participate, especially when alternatives with lower costs and clearer structures are emerging.

BlackRock’s Staked Ether ETF Could Accelerate the Shift

BlackRock has taken the first step toward launching a staked Ether ETF in Delaware, with the registration appearing earlier this week. The product would offer both exposure to Ether and staking yield—without the complex fee structures viewn in corporate treasury firms.

If approved, the ETF would charge around 0.25 percent, a fraction of the embedded operational costs inside DATs. According to 10x Research, this discrepancy may drive investors to rethink how they access ETH yield.

• Low-cost staking yield: A BlackRock ETF would inside a regulated wrapper.
• No treasury overhead: DATs have operational and management fee layers that ETFs lack.
• Clear redemption and NAV alignment: ETFs allow for creations and redemptions, assisting keep market price aligned with NAV.

10x Research argues that BlackRock’s entry “is likely to face increasing scrutiny” for DAT economics. As investors compare the of ETFs to the more opaque mechanisms inside DATs, capital may begin to migrate.

Other asset managers are already moving into this space. REX-Osprey and Grayscale both launched staked ETH ETFs earlier in the year, signalling strong institutional interest in packaging staking yields for public markets.

Investor Takeaway

What Comes Next for DATs and ETH Exposure?

emerged as a way for equity investors to gain leveraged exposure to crypto without directly holding tokens. For a time, they traded at large premiums, allowing them to raise capital continuously and increase their asset base. But with mNAV ratios dropping below 1 across the sector, the model is under strain.

If BlackRock’s staked Ether ETF is approved, it could become the default vehicle for mainstream ETH exposure, similar to how reshaped BTC investment flows. DATs would face shrinking premiums, limited fundraising capacity and rising questions about transparency.

For now, BitMine and its peers still control significant amounts of ETH, giving them strategic relevance. But unless NAV multiples recover or firms restructure their economic model, the pressure will continue to build—especially as ETF competition accelerates.