BitMine Unveils Annual Dividend Amid Massive Unrealized Losses and Market Turbulence

In a crypto market defined by volatility, one move stood out on Friday:

Tom Lee’s BitMine Immersion Technologies will pay an annual dividend — even as its Ethereum treasury drops below mNAV parity.

It’s a paradoxical moment.

BitMine, the largest public ETH-focused digital asset treasury (DAT), posted $328 million in net income for its fiscal year ending Aug. 31.

That’s $13.39 in fully diluted EPS — impressive by any traditional measure.

But the more complicated truth lies underneath the surface.

The First Big Crypto Treasury to Pay a Dividend

BitMine is positioning itself as something crypto treasuries have rarely been:

shareholder-friendly.

BMNR will pay an annual dividend of $0.01 per share on Dec. 29 — the first large-cap crypto company to do so.

It’s symbolic, modest, and strategic.

The stock trades around $26.49, far below its $135 peak in July, which came shortly after BitMine launched its ambitious ETH accumulation strategy.

But the dividend isn’t about yield.

It’s about signaling discipline at a moment when discipline is in short supply across the digital asset treasury sector.

Earlier this year, BitMine approved a share buyback program, becoming one of the first DATs to blend traditional corporate finance with crypto accumulation.

This hybrid playbook — buy ETH, buy back shares, pay dividends — is designed to appeal to both crypto believers and equity investors.

But there’s one massive problem BitMine can’t escape.

mNAV Crashes Below 1.0x — A Reality Check

ETH is trading near $2,730, meaning BitMine’s 3.55 million ETH stack — worth almost $10 billion — is deep underwater relative to its acquisition price.

BitMine bought those tokens at an average of $3,120.

Today, that creates an unrealized loss of roughly $4.52 billion.

And that’s why BitMine’s multiple to Net Asset Value (mNAV) has slipped below 1.0x —

investors are no longer paying a premium for the company’s holdings.

In effect, the market is saying:

“Your ETH is worth less inside your company than it would be in my wallet.”

That’s a brutal marker for any treasury firm.

The Competitor’s Warning: “The Capital Lever Breaks”

A representative from Ether Machine — a rival ETH treasury — didn’t hold back:

“The way in which BitMine and Sharplink have raised over $10B to buy more ETH… is a capital lever that breaks under these market conditions.”

Their argument is simple:

When the market turns, issuing equity to buy more ETH can amplify losses for shareholders, creating downside worse than simply holding ETH directly.

And the math backs it up.

Ether Machine’s analysis shows:

A BitMine buyer in August is down ~73%

An ETH buyer in the same period is down ~30%

That’s the hidden risk of the DAT model: leverage without calling it leverage.

The Whole DAT Sector Is Crashing

BitMine isn’t alone.

Digital asset treasuries surged in early 2025 as BTC and ETH ripped higher — but the second-half crash has been merciless.

The combined market cap of all crypto treasury firms:

July: $176 billion

Today: ~$99 billion

A nearly 44% wipeout.

The froth is gone.

The hype is muted.

And the treasuries are suddenly exposed.

Tom Lee: “We Are Well Positioned for 2026”

Despite the carnage, BitMine Chairman Tom Lee remains optimistic.

BMNR is:

Down nearly 50% over the past 30 days

Still up 258% year-to-date

This is the kind of volatility that builds legends or destroys careers.

Lee argues BitMine is preparing for the next cycle.

Its MAVAN staking network — the Made in America Validator Network — is launching in Q1.

It expands BitMine’s ETH income streams, complements its mining operations in Trinidad and Texas, and positions the company as a vertically integrated ETH machine.

In Lee’s view, the dividend is not a retreat.

It’s a flex.

A way to say:

“We’re bruised, but still in control.”

Final Line

BitMine is paying a dividend at the exact moment its Ethereum holdings sit underwater — a bold move in a market that punishes hesitation. The question now is whether this is the beginning of a disciplined turnaround… or the calm before a deeper reckoning for digital asset treasuries.

Author’s Note

This article was created with the assistance of advanced AI — a tool I will continue using to analyze digital asset treasuries, decode market structure, and deliver deeper insight into the companies shaping the future of decentralized finance.