The Ethereum price plunge has dealt a direct blow to major cryptocurrency holdings. Bitmine, which has been pursuing a strategy of holding large amounts of Ethereum, has recorded a valuation loss of approximately $4.3 billion (approximately 6 trillion won), highlighting the risks of cryptocurrency volatility once again.
Bitmine recently recorded a large book loss due to the sharp decline in the value of its holdings caused by the Ethereum price decline. The short-term plunge in Ethereum has turned a long-term holding strategy into a financial risk. The market sees this loss not as a simple price correction, but as an example of the structural risks that can arise when incorporating cryptocurrencies into corporate financial assets.
Bitmine is known to generate approximately 200 billion won in annual Ethereum staking revenue. However, the prevailing view is that staking revenue alone will not be enough to offset this valuation loss in the short term. Without a recovery in Ethereum prices, the possibility of prolonged losses cannot be ruled out.
This case, in particular, highlights the risks of an Ethereum holding strategy, contrasting it with a Bitcoin-centric strategy. While Ethereum offers advantages such as network utilization and staking returns, it also reveals that losses can rapidly increase if price volatility increases.
In the market, voices are calling for a rethinking of the approach that views cryptocurrencies as "cash equivalents" or "alternative reserve assets" in the wake of the recent Bitcoin incident. They argue that if a strategy to protect against price volatility is not implemented, beyond a simple holding and profit model, it could pose a critical burden on corporate finances.
It remains uncertain whether Ethereum's price will rebound in the future or whether volatility will persist. However, what is clear is that this valuation loss has brought to the surface risks previously hidden by the cryptocurrency bull market.
