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Lee predicted that ether (ETH) would reach $10,000 in this bull cycle.
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BitMine has 4.03 million ETH in its treasury.
The fall in the price of ether (ETH), the Ethereum cryptocurrency, is hitting BitMine Immersion (BMNR), the publicly traded company with the largest holding of this asset in its treasury.
At the time of publication of this note, ETH is trading at $2,367, 52% below its all-time high of $4,953according to calculations made with the NoticiasVE calculator:
As a consequence of this fall, the firm led by Tom Lee records unrealized losses of about $6,048 million due to the market decline.
In the following image of BitMine’s balance sheet, you can measure the impact of the fall of the Ethereum cryptocurrency on its treasury.
According to these data, The company currently maintains assets of about 9.2 billion dollarscomposed 100% of ETH.
The total capital invested by the company amounts to 15,651 million dollars, which explains the magnitude of the mismatch between the purchase value and the current price of the asset.
A key point is that the “realized profits” section appears at zero. This means that the company did not sell ETH, so it did not specify any profits or losses. That is, BitMine keeps its entire position open and the negative result is, for now, purely accounting.
Likewise, it is important to clarify that unrealized losses reflect how much the ETH the company has would be worth today if they were liquidated at the current market price.
As long as there are no sales, These losses can widen or narrow depending on the evolution of the ETH pricewithout an immediate impact on the company’s liquidity.
However, the scenario changes if BitMine begins to divest its holdings: in that case, the losses would cease to be accounted for and would become realized, and selling pressure could also be added to the market.
There is a risk to the price of ETH
The risk to the price of the Ethereum cryptocurrency is twofold. On the one hand, a significant sale of such a concentrated treasury can increase the supply available on the market and push the price down.
On the other hand, investors could interpret this movement as a negative signal. The fact that a large corporate holder reduces its exposure can create panic and accelerate additional sales.
It is worth remembering that Tom Lee, co-founder of Fundstrat, had projected that ETH could reach $10,000 during this bullish cycle, an expectation that contrasts with recent market performance.
The company also has set a goal of reaching 5% of the total supply of Ethereum’s native currency.
Currently, your current holding (4,243,338 ETH) is equivalent to approximately 3.51% of the total, so you would need to add about 1.80 million additional ETH to reach that goal.