ethereum's has plummeted over 50% from its October peak, triggering widespread liquidations across the crypto . BitMine Immersion Technologies, a key player in CeFi, now holds unrealized losses exceeding $6 billion on its Ether stash. This development signals broader instability in digital asset treasuries amid fragile liquidity.
BitMine's ethereum Treasury Strategy
BitMine shifted from mining to focus on ethereum as its core treasury asset in mid-2025. The firm aimed to accumulate up to 5% of the ETH supply to network growth.
According to company filings, BitMine acquired over 4.24 million ETH, valued at $9.6 billion currently. This positions it as the largest corporate ETH holder, but exposes it to sharp price swings.
Drivers Behind the Ether Sell-Off
market analysts point to excessive and thin liquidity as key factors in the downturn. The Kobeissi Letter noted that choppy liquidity creates
air pockets
in prices, amplifying herd-like sell-offs.
A major crash on October 10 erased $19 billion in crypto value, resetting investor risk appetite. Wintermute's report stresses the need for renewed momentum in bitcoin and Ether for recovery.
Impact on CeFi and Web3 Ecosystems
CeFi entities like BitMine face pressure from unrealized losses, risking forced sales if margins tighten. This could cascade into further market declines, affecting projects reliant on ETH.
Tom Lee, BitMine's chairman, warned that 2026 may start painfully due to ongoing deleveraging, though long-term fundamentals remain strong.
Trends in Crypto Treasury Management
Corporate adoption of crypto treasuries surged in 2025, with firms like SharpLink also building large ETH positions. However, recent volatility highlights the risks of tying valuations to asset prices.
Data from Dropstab shows BitMine's holdings peaked at $13.9 billion before the slide. This underscores the need for diversified strategies in volatile markets.
market Outlook and Lessons Learned
Experts anticipate a rebound later in 2026 if retail inflows return and ETF participation grows. Wintermute emphasized structural improvements to restore a wealth effect across digital assets.
BitMine's predicament illustrates the high stakes in CeFi treasury plays within . Investors must prioritize liquidity monitoring and controls to mitigate similar risks in future market cycles.
