Analysts say the growing unrealised losses of Bitmine shareholders and Ether’s 60% drop are signs of a crucial turning point that could determine Ether’s medium-term momentum.
As the crypto market falls, corporate Ethereum treasury businesses are facing more and more pressure. Analysts say the market is getting close to a make-or-break point for Ether’s investment case.
Bitmine Immersion Technologies, one of the biggest companies that owns Ether ETH$1,920, is sitting on a substantial unrealised loss because ETH is trading well below the company’s average purchase price, according to the third-party tracker Bitminetracker. Some estimates say that Bitmine has lost almost $8.8 billion on paper because Ether’s price has dropped over the past several months.
Bitminetracker says that ETH’s price has dropped 60% in the last six months, which is much lower than Bitmine’s average cost basis of $3,843 per token.
10x Research, a site that studies cryptocurrencies, stated on Monday that Ethereum is currently trading close to its valuation and cost-basis levels, which will help determine if the asset is just going through a cyclical slowdown or entering a time of deeper, structural instability.
“Investors must therefore carefully consider whether the asset is just going through a cyclical downturn or entering a phase of deeper structural impairment.”
Bitmine keeps buying ETH, even though it is losing more and more money on paper. Bitmine bought 45,749 Ether last week at an average total cost of $1,992 per ETH. This shows that the world’s largest Ether treasury corporation is confident.
Wall street backs Bitmine despite 59% stock decline
Morgan Stanley, Ark Investment Management, and BlackRock, the three largest owners in Bitmine, have all grown their stakes in the treasury corporation during the last three months of 2025.
According to Google Finance, Bitmine’s stock price has dropped almost 59% in the last six months and was trading at $19.68 before the market opened on Monday.
Ether treasury firms under mounting pressure
According to the company’s dashboard, SharpLink Gaming, the second-largest Ether treasury firm, is currently losing $1.4 billion on paper since ETH is trading below its average cost basis of $3,609.
According to CoinGecko, the Ether Machine, which is the third-largest corporate holder, is close to losing $948 million in unrealised losses. It bought its 496,712 Ether holdings, which are now worth $950 million, at an average price of $3,788.
Smart money shorts ETH for $67 million as big investors buy more on the spot market.
“Smart money,” or the best crypto traders by returns, are still wagering that Ether will go down.
According to the crypto intelligence platform Nansen, smart money traders added $1.48 million worth of short bets in the last 24 hours and were net short on Ether for $67 million.
According to Nansen, whales, or big cryptocurrency investors, have been buying spot Ether at a rate that is more than six times faster than before. In the past week, this group bought $44 million in spot ETH across 41 wallets.
In the last 15 days, new wallets have also purchased $245 million worth of spot Ether tokens. This shows that new people who enter the crypto market are buying more than they sell.