$1.3 billion in book losses! Tom Lee's Ether Lodge bet
The market value-to-net asset value ratio of Bitmine fell sharply from 5.6 in July to 1.2, with stock prices falling by 70 per cent over peaks。
The market value-to-net asset value ratio of Bitmine fell sharply from 5.6 in July to 1.2, with stock prices falling by 70 per cent over peaks。
By Sidhartha Shukla
Photo by Cooper, Foresight News
The experiment with the Enterprise Treasury of the Taifeng is falling apart in real time。
The world's second largest encrypted currency fell by $3,300 on Tuesday, at the same time as the market windmark bitcoin and the technology unit. The fall, which set the price of the Taifeng at 30 per cent below the peak of August, fell to the level of the pre-buyer of large-scale enterprises, further consolidating its entry into the bear market。
According to research company 10x Research, this reversal exposes the most radical corporate supporter of the Ether House, Bitmine Immmension Technologies Inc., to a book loss of over $1.3 billion. This listed company, supported by billionaire Peter Thiel, and led by Wall Street forecaster Tom Lee, has a strategy modelled on Michael Saylor's Bitcoin Treasury model, which buys 3.4 million IEDs at an average cost of $3909. Today, Bitmine ' s reserves are fully invested and are under increasing pressure。
In the report, 10x: "Bitmine has dominated the market narrative and financial flows for months. Its funds are now fully invested, with a deficit of more than $1.3 billion and no surplus funds available. I don't know
The report noted that the bulk investors who bought Bitmine shares at premiums higher than the net asset value (NAV) had suffered more losses, and that the market had limited willingness to “fly knives”。
Lee did not respond immediately to the request for comment, nor did the representative of Bitmine respond promptly。
Bitmine's bet is by no means a mere balance sheet transaction. Behind the company ' s growth is a larger vision: digital assets can shift from speculative instruments to corporate financial infrastructure, thereby consolidating the position of the Taifung in the mainstream financial sector. Proponents believe that by incorporating the Taifeng into the assets bank of listed companies, enterprises will help build a completely new decentrized economy. In this economic system, codes replace contracts and tokens function as assets。
This logic drives up the summer. In July and August alone, ETF attracted over $9 billion in inflows. But since the collapse of the encrypted market on October 10, the situation has reversed: according to data compiled by Coinglass and Bloomberg, since then, $850 million has been released from ETF, and $16 billion has been lost in the unsettled contracts for the futures of the Taifung。
Lee predicted that the Ether Workshop would reach $16,000 by the end of the year。
Bitmine ' s net asset value (mNAV) premium fell
According to Artemis, Bitmine ' s market value and net asset value multipliers fell sharply from 5.6 in July to 1.2, and its share price fell by 70 per cent from its peak. Similar to earlier bitcoin-related companies, Bitmine ' s share price is now closer to its bottom hold value, and the market is reassessing the high valuation of previously encrypted balance sheets。
Last week, another listed company, ETHZilla, sold $4 million worth of ETHZilla to buy back shares to restore its revised net asset value (mNAV) ratio. In a press release at that time, ETHZilla stated that it planned to use the remaining proceeds of the Taifung sale for further stock buy-backs and that it intended to continue to sell the Taifung to buy stock back until the discount relative to the value of the net assets returned to normal. I don't know
Despite the fall in prices, the long-term fundamentals of the Taifeng seem to remain strong: the chain value of its processing is still greater than the intelligent contractual network of all competitors, and the pledge mechanism allows the token to be combined with the yield and deflation properties. However, the narrative "businesses can stabilize the price of encrypted currency" is becoming ineffective as competitions such as Solana gathers momentum, ETF flows reverse, and diaspora interest declines。