Is the era of crypto treasuries already over, just a few months after their unprecedented growth? The current situation raises this question, as billionaire Peter Thiel liquidates half of his investment in Ethereum leader Bitmine.
Peter Thiel reduces his stake in Bitmine
Things are not going well for Digital Asset Treasuries (DAT). Even Strategy, the historic and undisputed leader in Bitcoin accumulation, is grappling with rumors about the possible implementation of a BTC sale procedure.
In this context, many publicly traded companies that have opted for crypto treasuries are facing complicated situations, with sharply falling share prices and a market net asset value (mNAV) that no longer delivers on its promised returns.
This scenario does not seem to have spared the leader in Ether accumulation, Bitmine, whose BMNR stock has fallen more than 70% since its peak on July 3 at $135. Despite this, the company still holds nearly 3% of the circulating ETH supply at the last count (approximately 3.4 million ETH).
And while the cryptocurrency market seems determined to continue its downward trend, some investors are clearly starting to jump ship, such as billionaire Peter Thiel, who has been officially registered as a Bitmine shareholder since last July.
A resale most certainly made at a loss
The information was made public by the X account of Sam Badawi, founder and CEO of Solid Finance. At issue is a strategic resale of half of Peter Thiel’s shares in the Ethereum treasury company, Bitmine, estimated at 9.1%.
Interestingly, Peter Thiel presented his investment in Bitmine last October as a way to own 10% of the available amount of Ether, in order to own 10% of tomorrow’s economic and financial system. This vision clearly clashes with the current market hesitations.
According to Sam Badawi, Peter Thiel’s resale would most likely result in significant losses, given that BMNR’s share price has fallen by more than 20% since mid-July. However, it is difficult to know the exact details of this transaction.
Nevertheless, Bitmine’s stock is not doing so badly for its holders prior to the announcement of its transformation into Ethereum Treasury. In fact, it is still up 975% over the last six months and 340% over the past year (YTD).
