Corporate Ether treasury companies are coming under increasing pressure as the latest crypto market correction pushes many large holders deep into unrealized losses. While some firms are holding through the downturn, others have already been forced to unwind positions at a loss.
The ongoing Ether price decline is now testing the long-term conviction and funding capacity of companies that built large ETH-focused treasuries during higher market valuations.
Corporate Ether Treasuries Sink Into Deep Paper Losses
BitMine Immersion Technologies, currently the largest corporate holder of Ether, is sitting on approximately $6.95 billion in unrealized losses. The company accumulated its ETH at an average price of $3,883 per token, far above Ether’s current market price near $2,240.
SharpLink Gaming, the second-largest Ether treasury firm, is also under pressure. The company is facing roughly $1.09 billion in paper losses after ETH fell below its average cost basis of $3,609, according to its public dashboard.
The sharp decline highlights how quickly balance sheets can deteriorate for corporate crypto holders when market sentiment shifts.
Falling mNAV Raises Capital Concerns
The growing unrealized losses are now impacting Market Net Asset Value (mNAV), a key metric for crypto treasury companies. BitMine’s mNAV has dropped to 1, while SharpLink’s mNAV has fallen to 0.92.
The mNAV ratio compares a company’s enterprise value to the value of its crypto holdings. When mNAV drops below 1, raising capital through equity issuance becomes significantly more difficult, potentially limiting future cryptocurrency purchases.
This dynamic could trigger a wave of consolidation across the sector. Asset manager Pantera Capital has warned that 2026 may bring a “brutal pruning,” where only the strongest and best-capitalized crypto treasury firms survive.
Tom Lee Stays Cautious but Constructive on Ether
Despite mounting concerns, Ether’s current drawdown remains broadly aligned with expectations outlined by Tom Lee, chairman of BitMine and co-founder of Fundstrat Global Advisors.
Lee previously projected that Ether could fall toward $1,800 in the first quarter of 2026 before stabilizing and rallying into year-end. That outlook was cited in December, suggesting the current correction may still be within a broader cyclical reset rather than a structural breakdown.
Trend Research Sells $79M in Ether at a Loss
The market downturn has already forced some treasury players to reduce exposure. Hong Kong-based investment firm Trend Research recently closed part of its leveraged Ether position.
On Monday, the firm sold 33,589 ETH worth approximately $79 million at a loss. Trend Research also borrowed an additional $77.5 million in USDT from Binance to repay outstanding loans, lowering its ETH liquidation level from $1,880 to $1,830, according to on-chain data shared by EmberCN.
Despite the sale, Trend Research still holds a sizable long position of around 618,000 ETH, valued at roughly $1.43 billion at the time of writing. That position currently carries an unrealized loss exceeding $534 million.
Founder Jack Yi acknowledged the miscalculation in timing, stating that the firm moved bullish on ETH too early after Bitcoin surged near $100,000 while Ether remained around $3,000.
Smart Money Quietly Accumulates Ether
While treasury firms are feeling the strain, on-chain data suggests some sophisticated investors are taking the opposite approach.
According to data from crypto intelligence platform Nansen, so-called “smart money” wallets accumulated $38.3 million worth of spot ETH over the past week. Whale wallets added $5.47 million, while newly created wallets purchased roughly $31 million during the same period.
The divergence highlights a familiar crypto market pattern: forced sellers reduce exposure under pressure, while long-term investors quietly accumulate during periods of weakness.
As Ether navigates its next phase, the coming months may determine which corporate treasury firms can endure volatility—and which are forced to exit the market altogether.
