Ethereum Updates: Digital Asset Holdings Resemble Dot-Com Era as ETH Downturn Erases $2.1 Billion

Leading crypto treasuries are struggling as the market downturn wipes out billions in value, with BitMine—the largest

(ETH) holder—now facing an unrealized deficit of $2.1 billion on its 3.4 million ETH stash. The over 22% drop in ETH’s value over the last month has put increased pressure on firms that amassed assets during bullish periods, now contending with significant capital losses, according to . Experts caution that these steep declines expose fundamental weaknesses in digital-asset treasury strategies, where long-term optimism is tested by short-term price swings, as highlighted by .

The impact is not limited to BitMine. Evernorth, which focuses on XRP, has reported $79 million in unrealized losses after its

holdings fell by 8.4% in just two weeks, according to . At the same time, Strategy (MSTR), a (BTC) treasury trailblazer, has seen its share price tumble 26% over the same period, though its BTC holdings remain in profit, according to . These events highlight the sector’s vulnerability, with BitMine alone acquiring over 565,000 ETH in the last month, further increasing its exposure to market volatility, as reported by .

On-chain analytics provider CryptoQuant points out that the current situation resembles the dot-com era, with many digital-asset treasuries (DATs) at risk as their market net asset value (mNAV) plunges, according to

. Their analysis shows BitMine’s average ETH acquisition price is $3,637.79, which is well above the current market price, deepening its unrealized losses, as stated by . Analysts warn that companies building large positions during market peaks often experience the most rapid capital depletion when sentiment shifts—a recurring theme in crypto’s turbulent history, as noted by .

Broader economic challenges are adding to the sector’s difficulties. The possibility of a U.S. government shutdown and a hawkish stance from the Federal Reserve are keeping investors wary, though optimism could return if a Fed chair is nominated before the year ends, as reported by

. Tax-loss harvesting in crypto through December is expected to further pressure prices, but a positive Supreme Court decision on tariffs could help lift market sentiment, according to .

Despite the volatility, Kazakhstan is moving forward with plans to establish a national crypto reserve fund worth between $500 million and $1 billion by 2026, signaling renewed institutional interest, as reported by

. Meanwhile, the (ETHW) disclosed a 0.20% yearly fee and an average share premium of 0.003%, reflecting ongoing liquidity challenges in the market, as noted by .

The industry’s future depends on whether firms can weather short-term turbulence while holding onto their long-term digital asset strategies. As forced liquidations from leverage continue to thin out market liquidity, analysts stress that holding assets outright—rather than relying on leverage—is essential for lasting growth, as reported by

.