Bitmine Immersion (BMNR), the most important Ethereum-focused digital asset treasury (DAT) led by Wall Road veteran Thomas Lee, is going through big unrealized losses on its huge wager on Ethereum. Ethereum$2,749.31.
The corporate on Friday introduced web revenue of $328 million for the fiscal yr ended Aug. 31, or absolutely diluted earnings per share of $13.39. It additionally declared a nominal dividend of $0.01 per share and introduced plans to launch its staking infrastructure product, MAVAN (Made-in America Validator Community), in early 2026.
Markus Thielen, founding father of 10x Analysis, warned that regardless of robust headline earnings, the corporate and different DATs face critical structural issues.
The corporate is presently estimated to have over $4 billion in unrealized losses on its holdings following the 45% drop in ETH costs since its peak in August. BMNR inventory has fallen 84% from its July excessive, and Thielen famous that the drawdown has erased the web asset worth (NAV) premium that when fueled investor enthusiasm.
Thielen argued that many digital asset treasury (DAT) corporations depend on advanced, multi-layered organizations resembling asset managers, strategic advisors and promotional billboards who earn excessive charges whereas embedding charges that “quietly erode their backside line.”
He famous that BitMine’s administration compensation and exterior advisors might attract $157 million yearly over 10 years by compensation and advisory agreements.
Thielen identified that Ether’s staking yield, which is a key supply of revenue for holding cryptocurrencies, just isn’t very engaging to traders. In keeping with CESR’s Complete Ether Staking Fee, the staking yield on Ether is presently round 2.9%, far under the yield on US greenback cash market funds, that are thought-about risk-free. After accounting for working prices and intermediaries, the efficient return for shareholders is far decrease, Thielen mentioned.
Thielen mentioned that yield “is not going to be accepted by critical institutional traders,” particularly when ETH’s “underlying collateral is continually in danger because of value fluctuations.”
Thielen warned that DAT might entice shareholders, particularly as NAV premiums collapse. “Buyers discover themselves trapped in a construction and unable to get out with out important injury. It is a Lodge California situation,” he mentioned.
