New research warns that falling mNAV ratios and competition from low-cost staked Ether ETFs could threaten the long-term viability of corporate crypto-treasury firms.
BitMine Immersion Technologies, one of the largest corporate holders of Ether, is under mounting pressure as its unrealized losses grow and its valuation metrics weaken. A new analysis from 10x Research reveals that BitMine is sitting on a $3.7 billion paper loss as its average purchase price remains far above current market levels. Analysts warn that the business model behind digital-asset treasury companies (DATs) is becoming increasingly strained — especially as major financial firms roll out cheaper, more transparent alternatives for staking and yield.
Corporate Crypto Treasuries Struggle as mNAV Ratios Fall
According to the research, BitMine holds 3.56 million ETH, representing nearly 2.94% of the total circulating supply. With an average cost basis of $4,051 per ETH, the current market price places the treasury firm roughly $1,000 underwater on each coin.
10x Research founder Markus Thielen cautioned that the decline in modified net asset value (mNAV) ratios is leaving many investors locked in. He explained that “when the premium inevitably shrinks to zero… investors find themselves trapped in the structure, unable to get out without significant damage.” He compared the situation to a “Hotel California scenario,” where shareholders can enter easily but struggle to exit without steep losses.
Thielen also highlighted that DATs often employ complex and opaque fee structures that can gradually chip away at long-term returns.
Competition Rises as Staked ETH ETFs Gain Momentum
The pressure on DATs intensified after BlackRock submitted filings for a new staked Ether exchange-traded fund in Delaware. Analysts say this product could provide a low-cost, yield-generating alternative for investors who want ETH exposure without the hidden costs associated with corporate treasury firms.
10x Research noted that with a management fee around 0.25%, BlackRock’s proposed ETF represents a much cheaper option for staking-based returns. The report states that “the economics of DATs are likely to face increasing scrutiny” as more investors evaluate the cost differences.
Other asset managers have already entered the market with staking-enabled ETH funds, signaling a broader shift toward traditional financial products offering transparent, regulated yield opportunities.
As falling mNAV ratios collide with the rise of low-fee staked ETH ETFs, the traditional digital-asset treasury model is facing a critical stress test. BitMine’s multi-billion-dollar unrealized losses highlight the vulnerability of firms built on premium-dependent valuations — a structure that may be losing relevance as institutional ETFs reshape the landscape of crypto investment.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.