Ethereum News Today: Crypto Treasuries Mirror Dot-Com Bubble as ETH Storm Wipes $2.1B

Major crypto treasuries are reeling from a market downturn that has erased billions in value, with BitMine, the largest Ethereum (ETH) holding firm, facing an unrealized loss of $2.1 billion on its 3.4 million ETH portfolio. The collapse in ETH prices—down over 22% in the past month—has intensified scrutiny on companies that accumulated assets during bullish cycles, now grappling with sharp capital erosion, according to BeInCrypto. Analysts warn that such drawdowns highlight structural risks in digital-asset treasury models, where long-term convictions clash with short-term volatility, as noted by BeInCrypto.

The pain extends beyond BitMine. Evernorth, an XRP-focused treasury, reported $79 million in unrealized losses as its XRP holdings depreciated by 8.4% in two weeks, according to TradingView. Meanwhile, Strategy (MSTR), a Bitcoin (BTC) treasury pioneer, has seen its stock drop 26% in the same period, though its BTC reserves remain in positive territory, per Yahoo Finance. These developments underscore a broader fragility in the sector, with firms like BitMine acquiring over 565,000 ETH in the past month alone, deepening their exposure to market swings, as detailed in Yahoo Finance.

CryptoQuant, a key on-chain analytics firm, notes that the current environment mirrors the dot-com bubble, with many digital-asset treasuries (DATs) at risk of collapse as their market net asset value (mNAV) plummets, as noted in Yahoo Finance. The firm's data reveals that BitMine's average cost basis for ETH is $3,637.79, starkly below current prices, amplifying its paper losses, according to BeInCrypto. Analysts caution that firms building positions during peak markets often face the fastest capital erosion when sentiment reverses—a recurring pattern in crypto's volatile history, as highlighted by BeInCrypto.

The sector's challenges are compounded by macroeconomic headwinds. A potential U.S. government shutdown and hawkish Federal Reserve policies keep markets cautious, though optimism grows if a Fed chair nomination materializes before year-end, as noted in TradingView. Tax-loss selling in crypto through late December is expected to add downward pressure, though a favorable Supreme Court ruling on tariffs could buoy sentiment, as noted in TradingView.

Amid the turmoil, Kazakhstan is preparing to launch a $500 million to $1 billion national crypto reserve fund by 2026, signaling renewed interest in institutional adoption, as reported in TradingView. Meanwhile, the Bitwise Ethereum ETF (ETHW) reported a 0.20% annual fee and a 0.003% average premium for its shares, reflecting broader market liquidity constraints, as noted in TradingView.

The sector's survival hinges on firms' ability to withstand near-term volatility while maintaining long-term digital-asset convictions. As leverage-driven liquidations continue to erode market depth, analysts emphasize that spot holdings—rather than leveraged bets—remain critical for sustainable growth, as noted in TradingView.