BitMine Immersion Technologies (BMNR), the world’s largest Ethereum-focused treasury company, now has nearly $8 billion in paper losses after ether. fell below $2,000 on Thursday.
The company, led by Wall Street bull Thomas Lee, accumulated 4.29 million ETH at an estimated cost of $16.4 billion, according to data from DropStab. That stash is now worth just $8.4 billion at current prices.
BMNR shares fell another 9% on Thursday to their lowest point since the company adopted an Ethereum strategy. It has now fallen 88% from its July peak, as investor concerns grow over the company’s exposure to ETH and the price collapse.
Despite the sharp decline, BitMine is not under immediate pressure to liquidate its assets. Unlike many other digital asset treasuries, the company used equity issuance, rather than borrowed funds, to finance its ether buying spree and other investments.
The company also has $538 million in cash and has begun generating revenue by staking over 2.9 million ETH, according to its update on Monday.
“There is no pressure to sell ETH at these levels, because there are no debt covenants or other restrictions/provisions,” Thomas Lee said in a statement, “BitMine is in a position to ride out the volatility of cryptocurrencies while earning recurring income and staking rewards.”
