Bitcoin and Ethereum Treasury Companies Face Massive Unrealized Losses
According to chain analytics provided by Yu Jin, last week saw a significant market downturn in Bitcoin and Ethereum, yet major treasury companies Strategy and Bitmine did not significantly increase their buying activity, resulting in minimal accumulation.
Currently, the combined unrealized loss of these two companies has reached $12.67 billion, highlighting the pressure on long-term investors during this market correction. Here are the details:
- Bitcoin treasury company Strategy (MSTR): Purchased 1,142 BTC last week at an average price of around $78,815, spending approximately $90 million. It now holds 714,644 BTC, valued at about $54.35 billion, with an average cost basis of $76,056 per BTC, resulting in an unrealized loss of $4.97 billion.
- Ethereum treasury company Bitmine (BMNR): Acquired 40,613 ETH last week at an average price of $2,072, spending around $84.15 million. It now holds 4,325,738 ETH, valued at approximately $8.82 billion, with an average cost of $3,820 per ETH, leading to an unrealized loss of $7.7 billion.
From a market performance perspective, current crypto prices remain in a consolidation phase, with heightened short-term volatility and cautious investor sentiment. Although long-term holders remain confident in eventual value recovery, the present unrealized losses pose financial and psychological challenges to these companies in the near term.