Corporate crypto treasury firm BitMine Immersion Technologies is facing an estimated USD 3.7 billion unrealized loss on its Ethereum holdings at the very moment major asset manager BlackRock enters the staking enabled ETH ETF market.
Key Takeaways
- BitMine holds 3.56 million ETH, representing about 2.94 percent of the total supply, with an average cost basis of USD 4,051 per ETH, resulting in a loss of nearly USD 1,000 per coin.
- The company’s mNAV ratio is 0.77 basic and 0.92 diluted, showing a weak ability to issue new shares or grow holdings.
- BlackRock has registered the iShares Staked Ethereum Trust in Delaware, signaling a move into Ethereum staking ETFs.
- Analysts warn DAT investors may be stuck in fee-heavy, illiquid structures as premiums decline.
What Happened?
Corporate treasuries built around digital assets, known as DATs, are increasingly under pressure. BitMine Immersion Technologies, which holds one of the largest corporate Ethereum positions, is facing sharp unrealized losses. According to research from 10x Research, BitMine is down about USD 1,000 per ETH, totaling USD 3.7 billion in losses.
JUST IN:
— Rekt Fencer (@rektfencer) November 20, 2025
Tom Lee’s Bitmine is sitting on $3.5 BILLION in unrealized losses on $ETH.
And we haven’t entered the bear market yet. pic.twitter.com/Qnhydol19P
At the same time, BlackRock filed a registration in Delaware for a staking-based ETH ETF called the iShares Staked Ethereum Trust. Though not yet approved as a formal ETF, this move has sparked concern over the long-term viability of DAT-style businesses.
BitMine’s Financial Strain
BitMine currently holds approximately 3.56 million ETH, valued at about USD 10.7 billion, which equals 2.94 percent of Ethereum’s total supply. However, the firm acquired its ETH at an average of USD 4,051, and with ETH trading lower, BitMine is down almost USD 1,000 per coin.
Its mNAV ratio, which compares enterprise value to crypto asset value, sits at 0.77 basic and 0.92 diluted. A value below 1 means the firm cannot efficiently raise capital by issuing more shares.
Markus Thielen, founder of 10x Research, warned in a LinkedIn post that DAT investors are being left “trapped” in the model. He described it as a “Hotel California scenario” where “investors find themselves trapped in the structure, unable to get out without significant damage.” He also noted that unlike ETFs, DATs use opaque, hedge fund-like fee structures that slowly erode returns.
BlackRock’s ETF Move: A New Threat
While DATs like BitMine struggle, BlackRock’s registration of the iShares Staked Ethereum Trust signals a bold shift. This filing is an early step, but it reflects intent to launch staking-based crypto ETFs. These products promise yield, transparency and lower costs are major selling points over DATs.
10x Research said the economics of DATs will face scrutiny as more investors realize the contrast in fees. BlackRock’s proposed ETF comes with a 0.25 percent management fee, while DATs often include complex embedded costs.
With traditional firms like REX-Osprey and Grayscale already offering staked ETH ETFs, competition is heating up. The arrival of the world’s largest asset manager could shift investor interest dramatically.
Wider Implications for Crypto Treasuries
BitMine’s situation highlights structural challenges facing DATs. These firms depend on trading at a premium to NAV so they can issue shares and grow holdings. But as premiums vanish, they lose that ability. Without offering staking rewards or cost advantages, DATs may struggle to stay relevant.
Key problems include:
- No built-in yield generation, unlike staking ETFs.
- Opaque fee models that reduce investor returns.
- Reduced liquidity and share issuance capacity when mNAV drops.
- Growing competition from regulated ETF providers.
In short, DATs are under pressure to evolve or face a shrinking market share.
CoinLaw’s Takeaway
In my experience writing about crypto treasuries and balance sheet strategy, BitMine’s loss is a cautionary tale. The firm holds a huge position in ETH, but its returns rely on market prices and investor sentiment. Meanwhile, BlackRock is entering with a product that offers clear benefits: yield, transparency and a low fee.
I believe we’re at a turning point. Investors now have access to simpler, regulated options. The days of relying on complex DAT structures may be ending. Personally, I would approach DAT investments with caution, especially when their mNAV signals financial weakness. This space needs a rethink, and BlackRock’s move could be the start of it.
