The business model built around holding massive amounts of cryptocurrency on corporate balance sheets is facing a major stress test. With the broader market downturn accelerating, companies that heavily stocked up on digital assets — especially Ethereum — are now confronting steep unrealized losses and weakened valuations.
Ethereum’s Slide Turns Into a Balance Sheet Liability
Ethereum’s recent fall into the $2,700 range has created significant pressure for publicly traded companies that used shareholder funds to accumulate large ETH positions. The rapid decline has widened unrealized losses and eroded the premium valuations many firms enjoyed just months ago.
Industry figures indicate that the combined market value of public digital-asset treasuries has plunged from $176 billion in July to about $99 billion today, wiping out nearly half of the sector’s capitalization in less than five months.
BitMine Highlights the Scale of Repricing
The clearest example of the shift comes from BitMine Immersion Technologies, now the largest Ethereum-focused public treasury. Earlier this year, the company amassed 3.55 million ETH at an average purchase price of roughly $3,120. At current market prices, that position is sitting on more than $4.5 billion in unrealized losses.
A rival at Ether Machine, another ETH-heavy treasury business, noted that investors who bought BitMine shares near the summer highs are now seeing deeper losses than those who simply bought ETH. Much of that impact stems from equity dilution used to fund BitMine’s aggressive accumulation strategy.
A Surprise Dividend Marks a Strategic Pivot
In a surprising move — especially for a crypto-native company — BitMine has introduced a $0.01 annual dividend, payable on December 29. This makes BitMine the first major crypto treasury firm to initiate a recurring dividend program, signaling a shift toward stabilizing investor confidence.
The step contrasts with the company’s July strategy, when booming excitement around its ETH purchases led BitMine to authorize an aggressive share buyback. Today, the strategy has shifted toward preserving trust during heightened volatility.
Financial Results and Share Performance
BitMine released its full fiscal-year earnings alongside the dividend news, reporting:
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$328 million in net income for the year ending August 31
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$13.39 diluted earnings per share (EPS)
Despite strong earnings, BMNR trades near $26.49, far below the $135 peak reached after the company first unveiled its Ethereum strategy.
Even with the recent 50% monthly decline, the stock still shows a year-to-date gain of more than 250%.
Eyes on the Next Bull Cycle
Management remains confident in long-term prospects. Chairman Tom Lee emphasized that BitMine is gearing up for 2026, focusing on infrastructure expansion instead of retreating.
The company’s upcoming Made in America Validator Network (MAVAN) — a large-scale ETH staking and validation system — is set to launch in the first quarter, further deepening BitMine’s involvement in Ethereum’s proof-of-stake ecosystem.
Alongside its ETH treasury, BitMine continues operating Bitcoin mining facilities in Texas and Trinidad, helping the firm diversify revenue beyond digital-asset holdings.