BitMine's equity-funded Ethereum accumulation strategy has locked shareholders into massive unrealized losses as ETH holdings are valued 43% below their cost basis
Too little corroboration in the last 3 days to call a trend (3 articles). Watching for it to gain traction.
"Bitmine's conviction has been tested by a prolonged bear market for Ether, which has sharply eroded the value of its digital asset treasury. The company is sitting on more than $8.4 billion in unrealized losses on its ETH holdings."
"The authors argue continued staking growth could concentrate ETH in large custodians and liquid staking providers, while unchecked issuance erodes Ether's role as a neutral, trustless store of value."
"As of May 31, this equity-funded expansion allowed BitMine to accumulate 5.42 million ETH with a cumulative cost basis of $19.05 billion... leaving the position approximately $8.2 billion, or 43%, below cost at quarter-end. The scale of the markdown highlights the exposure shareholders assumed as BitMine issued stock to acquire ETH at prices well above its May 31 carrying value."