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Amid rising losses and a declining share price, the ether treasury company asserts it faces no urgency to divest its assets.
Thomas Lee, chairman of BitMine (CoinDesk)
Key points:
- BitMine Immersion’s ETH reserves — acquired for $16.4 billion — are currently valued at $8.4 billion as ether falls below $2,000.
- BMNR stock has decreased by 88% since July and reached a new low on Thursday, dropping 7% on that day.
- The company reports it has no debt covenants and continues to earn staking revenue on its ETH holdings.
BitMine Immersion Technologies (BMNR), the largest Ethereum-centric treasury firm globally, is currently facing nearly $8 billion in unrealized losses as ether dropped under $2,000 on Thursday.
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The firm, led by prominent Wall Street figure Thomas Lee, acquired 4.29 million ETH at an estimated cost of $16.4 billion, as per information from DropStab. That holding is now worth merely $8.4 billion at current valuations.
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BMNR stock declined another 9% on Thursday to its lowest value since the firm transitioned to an Ethereum-focused strategy. It has now fallen 88% from its peak in July, as investor apprehension about the company’s ETH exposure and declining prices increases.
In spite of the considerable downturn, BitMine is under no immediate obligation to sell its assets. Unlike many other digital asset treasuries, the company financed its ether purchasing spree and other investments through equity issuance rather than through borrowed capital.
The firm also possesses $538 million in cash and has started generating income from staking over 2.9 million ETH, based on its update on Monday.
“There is no pressure to sell any ETH at these levels because there are no debt covenants or other restrictions/provisions,” Thomas Lee stated, “BitMine is positioned to endure crypto volatility while earning ongoing income and staking rewards.”
