Is the era of crypto corporate treasuries already over, just a few months after their unprecedented rise? The current situation raises this question, as billionaire Peter Thiel liquidates half of his investment in the leading Ethereum-focused firm, Bitmine.
Peter Thiel Reduces His Stake in Bitmine
Things are not going well for Digital Asset Treasuries (DATs). In fact, even Strategy, the historic and undisputed leader in Bitcoin accumulation, is grappling with rumors about a possible plan to sell BTC.
Against this backdrop, many publicly traded companies that have opted for crypto treasury holdings are facing difficult situations, with sharply falling stock prices and a market net asset value (mNAV) that no longer delivers on its promised returns.
This scenario does not seem to be sparing Bitmine, the leader in Ether accumulation, whose BMNR stock has fallen by more than 70% since its peak on July 3 at $135. Nevertheless, the company still holds nearly 3% of the circulating ETH supply as of the latest count (approximately 3.4 million ETH).
Bitmine’s stock has fallen 74% since its July peak
And while the cryptocurrency market seems set to enter a persistent downtrend, some investors are clearly starting to jump ship—such as billionaire Peter Thiel, who has been an official shareholder in Bitmine since last July.
A sale that was most certainly made at a loss
The information was made public via the X account of Sam Badawi, founder and CEO of Solid Finance. At issue is a strategic sale of half of Peter Thiel’s stake in the Ethereum mining company Bitmine, estimated at 9.1%.
Peter Thiel cuts his stake in Bitmine in half
Interestingly, Peter Thiel presented his investment in Bitmine last October as a way to own 10% of the total supply of Ether, thereby owning 10% of tomorrow’s economic and financial system. This vision clearly clashes with the market’s current hesitations.
According to Sam Badawi, this sale by Peter Thiel would almost certainly result in significant losses, given that the BMNR 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 hasn’t performed too badly for shareholders who held it prior to the announcement of its transformation into Ethereum Treasury. In fact, it is still up 975% over the past six months and 340% year-to-date (YTD).
