Bitmine Immersion Technologies shareholders have now accumulated approximately $8.8 billion in paper losses on Ethereum, surpassing the roughly $8.0 billion FTX customers initially lost when that exchange collapsed in 2022.
Crypto research firm 10x Research flagged the comparison on Monday, warning that ETH is at valuation levels where its fundamental value proposition is being “structurally tested.”
Ethereum’s price has fallen 60% over the past six months, dropping below Bitmine’s average cost basis of $3,843 per token, according to Bitminetracker.
The firm, chaired by Wall Street veteran Tom Lee, has drawn comparisons to Strategy’s Bitcoin treasury model, but the scale of unrealized damage now sits in historic territory.
Bitmine’s stock has dropped roughly 59% over the same period, trading at $20.13 today. Despite the drawdown, the company acquired 45,759 ETH last week.
“Investors must therefore assess carefully whether the asset is simply in a cyclical downturn or entering a phase of deeper structural impairment,” 10x Research said.
Here is where the capital allocation story gets uncomfortable. FTX’s prior $1.4 billion investment in Anthropic, made using customer funds, would be worth roughly $30 billion today had it not been sold for $1.3 billion during 2024 bankruptcy proceedings.
Anthropic’s valuation now stands near $380 billion. Ethereum’s entire market cap sits at roughly $231 billion. A single AI startup, partially seeded by stolen crypto funds, has eclipsed the network Bitmine staked its balance sheet on.
Not everyone agrees on what happens next. Smart money traders remain net short on ETH.
Whales are moving the other way. Large investors increased spot ETH accumulation by over sixfold in the past week, acquiring $44 million across 41 wallets. Fresh wallets created in the past 15 days bought $245 million in spot Ethereum, signaling new entrants are net buyers.
The top 11 Bitmine shareholders, including Morgan Stanley, Ark Investment Management, and BlackRock, all increased their positions during Q4 2025. SharpLink Gaming, the second-largest corporate ETH holder, faces a $1.4 billion paper loss. The Ether Machine sits on nearly $948 million in unrealized losses.
Bitmine keeps buying. Wall Street keeps holding. And the question 10x Research posed Monday is the one the entire Ethereum market now has to answer: cyclical bottom, or structural impairment?
Also Read: SEC ETF Deadline, CLARITY Act, New Fed Chair: 5 Events That Will Define Crypto in 2026
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