Corporate Ethereum treasury firms are facing mounting strain as the crypto market downturn deepens, with analysts warning the sector may be nearing a decisive moment for Ether’s long-term investment narrative.
Bitmine Immersion Technologies is currently sitting on significant unrealized losses as ETH trades far below its average acquisition price. Third-party tracker Bitminetracker estimates the company’s paper losses at roughly $8.8 billion following Ether’s sharp correction over recent months.
Bitmine Leads Losses but Doubles Down on ETH Accumulation
ETH has declined about 60% in the past six months, falling well beneath Bitmine’s reported average cost basis of $3,843 per token. Despite the downturn, the company continues to expand its holdings. Last week, Bitmine acquired 45,749 ETH at an average price of $1,992, signalling continued conviction even as its balance sheet reflects heavy unrealized losses.
Ethereum at a Breaking Point: Cyclical Bottom — or Structural Impairment?
Bitmine shareholders have now endured approximately $8.8 billion in paper losses, a figure that surpasses the roughly $8.0 billion in losses initially suffered by FTX customers when the exchange collapsed.… pic.twitter.com/wxoUCmQrgG
— 10x Research (@10x_Research) February 23, 2026
Major institutional investors appear to be maintaining confidence. The top shareholders in Bitmine, including Morgan Stanley, ARK Investment Management, and BlackRock, increased their exposure to the company during the fourth quarter of 2025. Still, Bitmine’s stock has dropped around 59% over the past six months, reflecting broader market weakness.
Other Ether treasury firms face heavy paper losses
The pressure extends beyond Bitmine. SharpLink Gaming, the second-largest Ether treasury firm, is facing an estimated $1.4 billion in unrealized losses as ETH trades below its average cost basis of $3,609.
Meanwhile, The Ether Machine holds nearly 496,712 ETH acquired at an average price of $3,788. With current valuations hovering near $950 million, the company is approaching $948 million in paper losses.
Market positioning remains mixed. Data from Nansen shows top-performing “smart money” traders are holding $67 million in net short Ether positions. However, large investors have accelerated spot ETH accumulation, purchasing $44 million worth of tokens in the past week, while newly created wallets have added $245 million, suggesting fresh capital is entering the market despite the downturn.
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