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BitMine Immersion Technologies (BMNR), the world's largest Ethereum-focused treasury company is now sitting on nearly $8 billion in paper losses after ether $ETH$1,963.25 fell below $2,000 on Thursday.
The firm, helmed by well-followed Wall Street bull Thomas Lee, accumulated 4.29 million $ETH at an estimated cost of $16.4 billion, according to data from DropStab. That stash is now worth just $8.4 billion at current prices.
BMNR stock fell another 9% Thursday to its lowest point since the company pivoted to an Ethereum strategy. It has now tumbled 88% from its July peak, as investor concern grows on the firm's $ETH exposure and collapsing prices.
Despite the sharp drawdown, BitMine is under no immediate pressure to liquidate its assets. Unlike many other digital asset treasuries, the company used equity issuance — and not borrowed funds — to fund its ether purchase spree and other investments.
The firm also holds $538 million in cash and has begun generating income from staking more than 2.9 million $ETH, according to its Monday update.
"There is no pressure to sell any $ETH at these levels, because there are not debt covenants or other restrictions/provisions," Thomas Lee said in a statement, "BitMine is in a position to ride out crypto volatility while earning recurring income and staking rewards."
cryptobriefing.com
cointelegraph.com
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