The cryptocurrency world remains abuzz with the news of Bitmine Immersion Technologies’ colossal paper loss in Ethereum, which now totals approximately $8.8 billion. This surpasses the notorious $8 billion loss suffered by FTX customers during the exchange’s dramatic downfall in 2022. As the dust settles, analysts are sounding the alarm on what this means for Ethereum’s core valuation and future stability.
Bitmine’s Ethereum Losses Surpass the FTX Debacle
Over the past six months, Ethereum’s price has seen a stark drop of 60%, plummeting below Bitmine’s average cost basis of $3,843 per token. The contrast with FTX’s loss is unavoidable, especially considering Bitmine’s heavy reliance on Ethereum as a core strategy, spearheaded by Wall Street veteran Tom Lee. The comparison brings forth the harsh reality that the damage is not merely cyclical but potentially historic.
Despite such heavy losses, Bitmine has been actively increasing its Ethereum holdings, with a recent acquisition of 45,759 ETH. Concurrently, Bitmine’s stock price has seen a steep decline of 59%, now trading at $20.13. It’s a critical juncture for investors, as they carefully weigh the possibility of a cyclical downturn against the risk of a deeper structural impairment in Ethereum’s value proposition. This sentiment was recently echoed by crypto research firm 10x Research, who highlighted the delicate position Ethereum currently inhabits.
Anthropic Eclipses Ethereum in Valuation
The broader implications of Bitmine’s woes are stark, as illustrated by the valuation of Anthropic, an AI startup formerly linked to FTX’s dubious investments. While the Ethereum network struggles under the weight of its strategic missteps, Anthropic’s valuation soars to an impressive $380 billion—far exceeding Ethereum’s current market cap of approximately $231 billion. This pivotal shift prompts uncomfortable scrutiny of past capital allocations and future prospects for Ethereum’s place in the digital landscape.
Divided Sentiment: Short Selling vs. Accumulation
Reactions to Ethereum’s current state vary significantly across investor profiles. As smart money traders position themselves with net shorts on ETH, institutional players and crypto whales are charting a contrasting course of action. Over the recent week, large investors have significantly increased their Ethereum holdings, amassing $44 million in spot ETH across 41 wallets. Additionally, freshly created wallets, active for mere weeks, have purchased a significant $245 million in Ethereum, hinting at enduring optimism amongst certain market segments.
Wall Street’s Enduring Confidence in Bitmine
Despite the turmoil, major Wall Street players such as Morgan Stanley, Ark Investment Management, and BlackRock have augmented their stakes in Bitmine. Their actions in Q4 2025 suggest a belief in Bitmine’s strategic direction or, perhaps, a calculated bet on Ethereum’s longer-term resilience. However, notable losses persist, as observed with SharpLink Gaming and The Ether Machine, holding respective paper losses of $1.4 billion and nearly $948 million in Ethereum assets.
These developments have left investors and analysts grappling with a pivotal question posed by 10x Research: Is Ethereum experiencing a temporary cyclical bottom, or has it entered an era of structural depreciation? The answer remains elusive, underpinned by market volatility and entrenched vested interests.
Also Read: SEC ETF Deadline, CLARITY Act, New Fed Chair: 5 Events That Will Define Crypto in 2026
