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Ethereum News Today: Ethereum’s Sharp Decline Puts DATs’ Accumulation Approach in Jeopardy

Ethereum News Today: Ethereum’s Sharp Decline Puts DATs’ Accumulation Approach in Jeopardy

Bitget-RWA2025/11/20 21:48
By:Bitget-RWA

- Ethereum's drop below $3,000 triggered a DAT sector crisis, erasing annual gains and exposing risks in corporate ETH accumulation strategies. - BitMine faces $3.7B in unrealized losses as its mNAV ratio fell to 0.77, mirroring 64.3% of DATs trading below asset value amid $2B crypto fund outflows. - Firms like FG Nexus are selling ETH for buybacks, worsening downward pressure while experts warn the $3,000 level tests regulatory adoption progress. - Derivatives data shows 70% probability of Ethereum hittin

Ethereum’s recent slide below the $3,000 threshold has sparked a crisis among digital asset treasury (DAT) companies, wiping out gains made over the past year and revealing weaknesses in the corporate

accumulation approach. The sharp price decline has caused a significant drop in the market-to-net asset value (mNAV) ratios for numerous firms, making it harder to raise capital and putting their ability to grow reserves at risk. Technologies, which holds the largest public Ethereum treasury, is now facing $3.7 billion in unrealized losses as its mNAV ratio dropped to 0.77, .

This downturn came after BitMine’s $170 million ETH acquisition last week, bringing its total stash to 3.56 million ETH (valued at $11.1 billion). Despite this, the company’s stock has tumbled 35% this month,

. This reflects broader industry woes: are now trading below their mNAV, indicating that market prices are not keeping up with their asset portfolios. The price crash has also triggered $2 billion in outflows from crypto investment funds over the past week, with Ethereum ETFs seeing $689 million in withdrawals, .

Ethereum News Today: Ethereum’s Sharp Decline Puts DATs’ Accumulation Approach in Jeopardy image 0
The turmoil has brought increased attention to the DAT business model, which is built on the premise of ongoing asset accumulation regardless of price. Despite the challenges, BitMine Chairman Tom Lee remains optimistic, forecasting an Ethereum "supercycle" similar to Bitcoin’s 100-fold rise since 2017. He attributes the current slump to the lingering impact of a $19 billion liquidation event in October, which he says has led to a "quantitative tightening" as market makers pull back on liquidity . Meanwhile, companies such as FG Nexus and ETHZilla have started selling ETH to finance share repurchases, .

Bearish sentiment is also evident in the derivatives market, where there is a 70% chance that Ethereum will fall to $2,750 by the end of the year,

. This stands in contrast to the optimism seen in early 2025, when Ethereum treasuries hit their peak in August. The difficulties facing the sector are not limited to Ethereum: Bitcoin has also dropped 35% from its August peak, though Strategy (MSTR), the largest treasury, continues to accumulate, purchasing $835 million in BTC this week .

Analysts caution that the current market is a major test for DATs’ durability. “The $3,000 mark serves as a benchmark for progress in regulatory and institutional adoption,” said

. With corporate buyers still accumulating on net, the future of the sector may depend on how quickly Ethereum can recover. For now, the market is gripped by “extreme fear,” with ongoing liquidations and capital flight suggesting the downturn could persist .

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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