Big Banks Buy BMNR as Paper Losses Hit $8B

Institutional buying is accelerating at a steep discount. According to Q4 2025 13F filings, Bank of America and the Royal Bank of Canada have significantly increased their holdings in Bitmine (BMNR). Bank of America's stake surged 1668% to 3.16 million shares valued at $85.8 million, while RBC's position rose 121% to 765,000 shares worth $20.7 million.

This accumulation happens as BMNR's underlying asset faces massive paper losses. The company's Ethereum treasury, acquired for an estimated $16.4 billion, is now valued at just $8.4 billion. This creates an unrealized loss of approximately $8 billion for the firm, a figure that has grown as ETH prices have fallen.

The thesis is straightforward: traditional banks are buying BMNR shares at a steep discount to the company's reported $8 billion paper loss. They are gaining indirect exposure to Ethereum at a valuation that ignores these unrealized losses, betting on a future rebound in the underlying asset.

The BMNR Trade: High Leverage, No Pressure to Sell

The trade's resilience stems from its clean capital structure. Unlike many digital asset firms, BitMine has no debt covenants and used equity, not borrowed funds, to finance its Ethereum accumulation. This structural flexibility gives the company significant runway to hold through volatility without facing forced liquidation.

This patience is on full display in the stock's brutal price action. BMNR has dropped 88% since July and hit a 7-month low, trading around $18. The steep decline reflects the market's harsh reckoning with the firm's $8 billion in unrealized losses. Yet the absence of debt pressure means the company can weather this drawdown without selling ETH at a loss.

Supporting the strategy is a growing yield stream. The firm has begun generating income from staking more than 2.9 million ETH. This recurring staking reward provides a cash flow cushion and reinforces the core thesis of holding ETH for the long term, turning a massive paper loss into a potential future gain.

Catalysts and Risks: The Path to Realization

The primary catalyst for BMNR is a recovery in Ethereum's price above its ~$16.4 billion cost basis. Only then can the firm begin to realize its massive paper losses. The stock's steep 88% decline since July reflects the market's harsh reckoning with this $8 billion unrealized loss. Any sustained move back toward the original acquisition price would directly translate to a reduction in that loss, providing a clear path for the stock to re-rate.

The key near-term risk is further weakness in Ethereum. Management itself acknowledges the vulnerability, with prediction markets currently assigning a nearly 72% chance that Ethereum falls to $1,500. Such a drop would extend the paper loss beyond $8 billion, compounding the pressure on BMNR's share price. The stock's recent 7-month low and daily volatility underscore how sensitive it is to ETH's price swings.

The trade's conviction will be tested by future institutional flows. The recent accumulation by banks like Bank of America and RBC shows strong initial bet. Investors must watch upcoming 13F filings for signs of continued buying, which would signal sustained confidence, or any selling, which could indicate a shift in the institutional view on the timing of the ETH rebound.