DAT companies are facing staggering unrealized losses in Ethereum after a market correction, with BitMine leading the decline at $6.95 billion.
Significant downturns in the cryptocurrency market have led to enormous paper losses for major holders of Ethereum, with BitMine facing a staggering $6.95 billion in unrealized losses. This decline comes as the average purchase price for BitMine was $3,883, compared to the current trading price of approximately $2,240.
Investor Ross Gerber referred to founder Tom Lee's Ethereum trading strategy as possibly "the worst trade in history," highlighting the severity of the situation.
Could be close to the worst trade ever… we shall see. https://twitter.com/GerberKawasaki/status/2017966821937451320
SharpLink Gaming, the second-largest entity holding Ethereum, reported $1.09 billion in losses, with its entry price averaging $3,609. Consequently, BitMine's market Net Asset Value (mNAV) ratio has dropped to 1, while SharpLink's has fallen to 0.92. A ratio below one complicates efforts to raise capital through stock issuance, which poses challenges for acquiring additional cryptocurrencies.
Market analysts at Pantera Capital anticipate a "brutal cleansing" of DAT companies in 2026 as a result of these downturns. This aligns with Tom Lee's earlier predictions, where he suggested Ethereum could drop to $1,800 in the first quarter of 2026 before stabilizing by year-end.
After aggressively calling $7,500, Tom Lee is now targeting $1,800.
This is why retail gets rekt. $ETH
In response to market pressures, Trend Research in Hong Kong sold 33,589 ETH for $79 million on February 2, realizing a loss to address their leveraged position. The founder of Trend Research, Jack Yi, acknowledged the premature long position they had taken when Ethereum was considered undervalued at $3,000.
作为现在全网压力最大的人，首先必须承认：自从顶部清仓后，确实过早看多eth是错误的…
Currently, Trend Research holds 618,000 ETH, facing an unrealized loss nearing $534 million. Yi expressed the intent to manage risks while awaiting a market rebound.
On a more positive note, Strategy's founder Michael Saylor announced the acquisition of 855 BTC for around $75.3 million, bringing their total holdings to 713,502 BTC with an average purchase price of $76,052.
Nomura Adjusts Cryptocurrency Investments
In a broader industry trend, Nomura Holdings, a prominent Japanese financial institution, is scaling back its cryptocurrency investments following recent losses in its Swiss subsidiary, Laser Digital Holdings. CFO Hiroyuki Moriuchi confirmed the initiation of stricter risk management measures to address the market's volatility.
Nomura's net profit for the quarter was ¥91.6 billion ($591.6 million), below analyst expectations. This prompted a 6.7% drop in share prices, leading the company to announce a buyback of up to ¥600 billion ($38.7 billion) to bolster investor confidence. Despite these hurdles, Nomura remains optimistic about the digital asset sector's potential for growth.
