Crypto Treasury Play Implodes: Is This a Lesson for Everyone?

BMNR stock tanked 24.4% this week — and honestly, the story behind it is kind of hilarious in a painful way.

Here’s the deal: a company pivoted hard into being an Ethereum vault earlier this year, raised $7B, loaded up 3.56M ETH tokens, and basically said “we’re just hodling for you.” Cool strategy, right? Except ETH just dumped 28% as leverage gets liquidated across the market.

The wild part? The stock now trades below the actual value of the crypto sitting on their balance sheet ($10B market cap vs $11.8B in assets). You’d think that’s a steal — but here’s the catch:

Why you’re probably better off buying ETH directly:

• Management overhead eating into returns
• Dilution risk from future share issuance
• One bad decision by the team and your money’s gone
• Same price exposure, but way more complications

It’s basically paying a middleman to do what you could do yourself on any exchange in 5 minutes.

The real question: Is this a buying opportunity, or a reminder that not every “clever” wrapper around crypto actually makes sense? MicroStrategy did this and somehow it worked out… but BMNR is bleeding hard this week.

What’s your take — diamond hands or dead weight?