The drop in the price of the cryptocurrency Ethereum (ETH) is hitting Bitmine Immersion (BMNR), the listed company with the largest holding of the asset in the Treasury.
At the time of publication of this note, ETH is trading at $2,367, 52% below its all-time high of $4,953.according to calculations made with the CriptoNoticias calculator:
As a result of this decline, Tom Lee’s company recorded unrealized losses of approximately $6.048 billion due to the market decline.
In the following image of BitMine’s balance sheet, you can measure the impact that the collapse of the Ethereum cryptocurrency has had on the Treasury.
According to these data, The company currently has assets of approximately $9.2 billion.constitutes 100% of ETH.
The total capital invested by the company amounted to $15.651 billion, which explains the magnitude of the discrepancy between the purchase price of the assets and the current price.
The important point is that the “realized profit” part is shown as zero. This means that the company did not sell any ETH. Therefore, no profit or loss was identified. This means that BitMine has left the entire position open and the negative outcome is purely accounting for now.
Similarly, it is important to clarify that unrealized losses reflect what the ETH held by a company would be worth today if it were liquidated at the current market price.
As long as there are no sales, These losses can grow or shrink depending on the evolution of ETH pricethere will be no immediate impact on the company’s liquidity.
However, the scenario changes once BitMine starts selling its holdings. In that case, losses will no longer be recorded, and losses may become real, adding selling pressure to the market.
ETH price has risks
There are two risks to the price of the Ethereum cryptocurrency. On the other hand, such a large and concentrated sale of government bonds could increase the supply available in the market, pushing down prices.
On the other hand, investors may interpret this move as a negative signal. The fact that large corporate holders reduce their exposure It can cause panic and accelerate additional sales.
It is worth remembering that Fundstrat co-founder Tom Lee predicted that ETH could reach $10,000 during this bull cycle, but this prediction stands in contrast to recent market performance.
The company too We have set a goal to reach 5% of the total supply of Ethereum’s native currency.
Currently, your current holdings (4,243,338 ETH) represent about 3.51% of the total, so you would need to add about 1.8 million more ETH to reach that goal.
(Tag Translation) Altcoin
