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Ethereum Updates Today: Ethereum Companies Increase Investments During Market Downturns Despite $2.5B in Staking Losses

Ethereum Updates Today: Ethereum Companies Increase Investments During Market Downturns Despite $2.5B in Staking Losses

Bitget-RWA2025/11/05 06:46
By:Bitget-RWA

- Ethereum's price slump caused $2.57B losses for staking pools Bitmine and Sharplink as their mNAV fell below 1. - ETH dropped 30% from its September peak, leaving both firms underwater with combined 4.17M ETH holdings. - Despite losses, operators continue "buy the dip" strategies, adding $300M ETH weekly amid fragile market conditions. - Broader crypto weakness and Bitcoin ETF outflows highlight systemic risks as stablecoin issues worsen liquidity.

The recent decline in Ethereum's (ETH) price has resulted in substantial losses for leading staking pool operators

and , with their combined market net asset value (mNAV) dropping below 1 and losses totaling $2.57 billion, as reported by . This downturn comes amid a broader slump in the cryptocurrency market, with falling under $3,500 for the first time since August, causing significant losses for companies that had built up large reserves during the earlier bullish period this year.

This sharp drop highlights the risks associated with Ethereum treasury management, as the token has lost nearly 30% of its value since reaching $4,953 in September, according to

. Bitmine and Sharplink, which together control 4.17 million ETH worth over $14.5 billion, are now facing major unrealized losses, the Yahoo report stated. Bitmine’s average acquisition cost stands at $4,037 per ETH, while Sharplink’s is $3,609, leaving both companies in the red as the market corrects.

Ethereum Updates Today: Ethereum Companies Increase Investments During Market Downturns Despite $2.5B in Staking Losses image 0

This volatility comes as Ethereum’s long-term outlook remains uncertain. Spot ETH ETFs saw inflows of $668.13 million in October 2025, according to

, but the sector still faces challenges. ETFs, on the other hand, experienced outflows of $607 million during the same timeframe, as noted by Crypto.news, reflecting differing investor attitudes. BlackRock’s ETHA ETF, the largest Ethereum-focused fund, now manages $15.15 billion in assets, according to Crypto.news, but the overall market remains unstable.

Some technical signals offer cautious optimism. Crypto.news reports that Ethereum has formed a bullish flag pattern on the weekly chart, with prices rebounding from an April low of $1,394. Still, the recent dip below key moving averages and a projected 70% correction by Sigma Capital’s Vineet Budki, as cited by Yahoo, point to ongoing turbulence.

Negative sentiment has also affected the stock market.

(BMNR), which owns 3.31 million ETH—representing 2.8% of the total supply—saw its share price drop 7.42% on Tuesday as Ethereum fell 5.7%, according to . The company’s valuation is closely linked to ETH’s price, and its plan to acquire 5% of all Ethereum is now being questioned, Benzinga reported.

Despite recent setbacks, Ethereum treasury operators are sticking to their strategies. Bitmine purchased an additional $300 million in ETH during the week of November 3, according to Yahoo, while Sharplink continues to buy in smaller amounts. This strategy of buying during price dips signals their belief in Ethereum’s long-term potential, even as short-term losses mount.

Market instability is further exacerbated by broader economic trends. A general move away from risk, driven by profit-taking in high-growth tech stocks and Bitcoin’s fall below $101,000, as noted by Benzinga, has increased selling pressure on crypto-related assets. At the same time, issues like stablecoin fragmentation and poor user experience continue to hinder liquidity, Yahoo reported.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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