Ethereum’s $8.8B Loss: Worse Than FTX? Or a Cosmic Coincidence?

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In a stunning twist of cosmic irony, Bitmine Immersion Technologies’ shareholders have now amassed a staggering $8.8 billion in paper losses on Ethereum, outdoing the mere $8 billion lost by FTX customers in 2022. It’s as if the universe itself is throwing a party for those who invested in the wrong blockchain.

Crypto research firm 10x Research, ever the party pooper, raised an eyebrow on Monday, warning that ETH is at valuation levels where its fundamental value proposition is being “structurally tested.” Which, in other words, means it’s about as stable as a teacup in a hurricane.

Bitmine’s Ethereum Losses: Exceeding the FTX Collapse, or Just a Bad Day?

Ethereum’s price has taken a nosedive, falling 60% over the past six months, plummeting below Bitmine’s average cost basis of $3,843 per token. It’s like trying to sell a used toaster at a garage sale, only to realize the buyer is a robot from the future.

The firm, led by Wall Street veteran Tom Lee, has drawn comparisons to Strategy’s Bitcoin treasury model, but the scale of unrealized damage now sits in historic territory. Or, as the saying goes, “If you can’t beat them, buy more tokens.”

Bitmine’s stock has dropped 59% over the same period, trading at $20.13 today. Despite this, the company acquired 45,759 ETH last week. It’s like a gambler who loses their house but still buys a lottery ticket with the last of their savings.

“Investors must therefore assess carefully whether the asset is simply in a cyclical downturn or entering a phase of deeper structural impairment,” 10x Research said. Which, in layman’s terms, means “Are we in a temporary slump, or has the universe decided to crash our party?”

Anthropic: The AI Startup That Outgrew Ethereum, or Just a Fluke?

Here’s where the capital allocation story gets uncomfortable. FTX’s prior $1.4 billion investment in Anthropic, made with customer funds, would be worth $30 billion today if not for the 2024 bankruptcy sale. It’s like investing your life savings in a lottery ticket, then selling it for a dollar because you’re in a hurry.

Anthropic’s valuation now stands near $380 billion, while Ethereum’s market cap is a mere $231 billion. A single AI startup, partially funded by stolen crypto, has outshone the network Bitmine staked its balance sheet on. It’s like a toddler outperforming a Nobel laureate in a spelling bee.

Smart Money Shorts ETH While Whales Accumulate: A Tale of Two Investors?

Not everyone agrees on what happens next. Smart money traders remain net short on ETH, because nothing says “I’m confident” like betting against the moon.

Whales are moving the other way. Large investors increased spot ETH accumulation by over sixfold in the past week, acquiring $44 million across 41 wallets. Fresh wallets created in the past 15 days bought $245 million in spot Ethereum, signaling new entrants are net buyers. It’s like a party where everyone’s buying tickets except the host.

Wall Street’s Bet: Increasing Bitmine Exposure, or Just a Desperate Gamble?

The top 11 Bitmine shareholders, including Morgan Stanley, Ark Investment Management, and BlackRock, all increased their positions during Q4 2025. SharpLink Gaming, the second-largest corporate ETH holder, faces a $1.4 billion paper loss. The Ether Machine sits on nearly $948 million in unrealized losses. It’s like a casino where everyone’s betting their life savings, but the house is still taking a cut.

Bitmine keeps buying. Wall Street keeps holding. And the question 10x Research posed Monday is the one the entire Ethereum market now has to answer: cyclical bottom, or structural impairment? Which, in other words, is the universe trying to tell us something, or just having a bad hair day?

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2026-02-23 17:58