BitMine (BMNR) faces $8 billion paper loss on ether holdings

BitMine Immersion Technologies (BMNR), the world’s largest Ethereum-focused treasury company is now sitting on nearly $8 billion in paper losses after ether ETH$1,939.27 fell below $2,000 on Thursday.

The firm, helmed by well-followed Wall Street bull Thomas Lee, accumulated 4.29 million ETH at an estimated cost of $16.4 billion, according to data from DropStab. That stash is now worth just $8.4 billion at current prices.

BMNR stock fell another 9% Thursday to its lowest point since the company pivoted to an Ethereum strategy. It has now tumbled 88% from its July peak, as investor concern grows on the firm’s ETH exposure and collapsing prices.

Despite the sharp drawdown, BitMine is under no immediate pressure to liquidate its assets. Unlike many other digital asset treasuries, the company used equity issuance — and not borrowed funds — to fund its ether purchase spree and other investments.

The firm also holds $538 million in cash and has begun generating income from staking more than 2.9 million ETH, according to its Monday update.

“There is no pressure to sell any ETH at these levels, because there are not debt covenants or other restrictions/provisions,” Thomas Lee said in a statement, “BitMine is in a position to ride out crypto volatility while earning recurring income and staking rewards.”