BitMine $3.7B mNAV Loss as BlackRock’s ETH Staking ETF Looms
BitMine Immersion Technologies, the world’s largest corporate ETH holder, is facing a $3.7 billion unrealized loss. Its market-adjusted net asset value (mNAV) has fallen to 0.77 (core) and 0.92 (diluted) after buying about 3.56 million ETH at an average cost of $4,051 per token.
Analysts warn that complex fees at digital asset treasury (DAT) firms are eroding returns and trapping investors in a “Hotel California” scenario. Exiting means realizing steep losses.
Pressure on DATs is mounting as BlackRock registers a new ETH staking ETF in Delaware. The proposed fund carries a 0.25% management fee, undercutting typical DAT expenses. REX-Osprey and Grayscale have also launched staking products, heightening competition on fee structures.
Traders should track mNAV ratios across DATs and monitor the SEC’s decision on BlackRock’s ETH staking ETF. Approval could trigger capital shifts toward lower-fee staking ETF products, widen NAV discounts on DAT stocks and influence ETH market dynamics.
Bullish
In the short term, BitMine’s significant unrealized loss and falling mNAV may weigh on sentiment around ETH. However, the looming launch of BlackRock’s low-fee ETH staking ETF is likely to draw new institutional and retail capital into Ethereum staking. Higher stake demand can lock up ETH supply, easing sell-pressure and supporting price. Over the long term, broader acceptance of staking ETFs by major asset managers like BlackRock, REX-Osprey and Grayscale should enhance liquidity and market depth, underpinning a bullish outlook for ETH.