Ethereum News Today: Ethereum's Plunge Exposes Crypto Treasury Bets, $2.5B Loss Highlights Strategy Risks

Bitmine Immersion Technologies (BMNR) and SharpLink (SBET) face mounting losses as Ethereum (ETH) prices plummet, pushing their combined staking pool into a $2.57 billion deficit. With the median Net Asset Value (mNAV) of both firms trading below 1, the companies' aggressive Ethereum accumulation strategies now appear to be backfiring amid a broader crypto market selloff.

The decline began on Nov. 4, when ETH dropped below $3,500 for the first time since August, triggering significant unrealized losses for Ethereum treasury companies, according to a CCN report. Bitmine, which holds 3.4 million ETH (2.8% of the total supply), saw its holdings valued at $11.32 billion, down from an average purchase price of $4,037 per token, as Weex reported. SharpLink, with 860,000 ETH, also faced a $170 million loss, as its average cost basis stood at $3,609, Weex also reported. Together, the two firms control over 4.2 million ETH, valued at $14.5 billion, yet their current market valuations lag behind their acquisition costs, the CCN piece added.

The losses highlight the risks of large-scale crypto treasury strategies. Bitmine's stock (BMNR) fell 7.42% to $39.69 on Tuesday, mirroring the 5.7% drop in ETH prices, Benzinga reported. The company's total crypto, cash, and "moonshot" assets now stand at $13.7 billion, down from $14.2 billion in late October, StockTwits reported. Meanwhile, SharpLink's mNAV of 0.87 indicates its market capitalization ($2.297 billion) has fallen short of its Ethereum holdings' value ($2.86 billion), according to Weex.

Despite the downturn, both firms continue to buy ETH amid the selloff. The CCN article noted that Bitmine spent $300 million on ETH in the week starting Nov. 3, while SharpLink executed smaller but consistent purchases. Morningstar reported that Thomas "Tom" Lee, Bitmine's chairman, called the market reset "healthy," arguing that Ethereum fundamentals—such as rising stablecoin supply and decentralized finance activity—remain strong.

The broader market context exacerbates the situation. Benzinga also noted that Bitcoin (BTC) dipped below $101,000, triggering over $1 billion in liquidations and amplifying risk-off sentiment. Tech stocks like Palantir also fell sharply, signaling a broader flight from high-growth assets. Meanwhile, StockTwits data showed that Ethereum's open interest has declined 45% in eight weeks, the largest drop in its history.

Industry analysts remain divided. While some view the selloff as an overreaction, others caution that Ethereum treasuries could face further pressure if the bearish trend persists. For now, Bitmine and SharpLink's strategies hinge on the assumption that prices will eventually converge with fundamentals—a gamble that has yet to pay off.