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BitMine Sits on $3.7B Loss as DAT ‘Hotel California’ Meets BlackRock’s Staked ETH ETF

BitMine Immersion Technologies, the largest corporate holder of Ether, now faces a $3.7 billion paper loss as its ETH cost basis of $4,051 per token sits $1,000 below current prices, pushing its market‑adjusted NAV (mNAV) below 1 (0.77 basic, 0.92 diluted). The low mNAV hampers its ability to raise capital and traps existing shareholders, a situation described by 10x Research as a “Hotel California” scenario. At the same time, BlackRock has filed for a low‑cost (0.25% fee) staked‑ETH ETF, which could draw investors away from digital‑asset treasury companies (DATs) that carry higher, opaque fee structures. Other DATs such as Strategy, Metaplanet and Sharplink Gaming are experiencing similar mNAV declines, raising questions about the viability of the DAT model.