The ongoing crypto downturn is putting significant pressure on major corporate holders of Ethereum (ETH), with some firms facing substantial paper losses as the price of the cryptocurrency continues to slide. Bitmine Immersion Technologies, one of the largest corporate holders of ETH, is among those hit hardest, with estimated paper losses of around $8.8 billion, according to third-party tracker Bitminetracker.
Bitmine’s average acquisition cost for ETH is around $3,843 per token, but the current market price is far below this threshold, having fallen 60% over the past six months. Despite these losses, Bitmine continues to accumulate ETH, purchasing 45,749 tokens last week at an average cost of $1,992 per ETH. This move signals a show of confidence from the world’s largest Ether treasury firm, even as the market remains volatile.
Analysts Weigh In
Crypto research firm 10x Research has noted that Ethereum is now trading near valuation and cost-basis levels that test whether the asset is in a cyclical downturn or entering a period of deeper structural weakness. Investors must therefore assess carefully whether the asset is simply in a cyclical downturn or entering a phase of deeper structural impairment,
the firm stated.
Wall Street Maintains Exposure
Despite the downturn, major Wall Street players continue to hold or increase their exposure to Bitmine. The top 11 shareholders, including Morgan Stanley, Ark Investment Management, and BlackRock, have all increased their stakes in the treasury firm during the fourth quarter of 2025. Bitmine’s stock price has fallen by about 59% over the past six months, trading at $19.68 in the pre-market on Monday.
Other Corporate Holders Face Similar Struggles
Other leading Ether treasury companies are also feeling the pressure. SharpLink Gaming, the second-largest Ether treasury firm, is facing a $1.4 billion paper loss as ETH trades below its average cost basis of $3,609. The Ether Machine, the third-largest corporate holder, is nearing $948 million in unrealized losses, with its 496,712 ETH holdings currently worth $950 million, acquired at an average price of $3,788 per token.
Market Sentiment and Trading Activity
The leading crypto traders, known as “smart money,” are betting on further declines in ETH. According to crypto intelligence platform Nansen, smart money traders added $1.48 million worth of short positions in the past 24 hours and are currently net short on Ether for $67 million. However, large cryptocurrency investors, or whales, have increased their spot ETH accumulation pace by over sixfold in the past week, acquiring $44 million in spot ETH across 41 wallets.
Fresh wallets created in the past 15 days have also bought $245 million worth of spot Ether tokens, indicating that new market entrants are net buyers. This dynamic suggests a mixed sentiment in the market, with some investors betting on further declines while others see the current price as an opportunity to accumulate.
Looking Ahead
The current market conditions are a critical test for Ethereum and its corporate backers. While the price decline has led to significant paper losses, the continued accumulation by whales and the confidence shown by Bitmine suggest that there is still a strong belief in the long-term potential of ETH. As the market continues to evolve, the resilience of these corporate holders will be a key factor in determining whether the current downturn is cyclical or indicative of a deeper shift in the crypto landscape.
About the Author
