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Crypto treasury firm Trend Research has slashed its Ethereum holdings by more than 404,000 tokens in less than a week—transferring over 411,000 ETH to Binance—as the cryptocurrency’s 30% crash brought the company’s leveraged positions within striking distance of liquidation thresholds between $1,698 and $1,562, while fellow Ethereum treasury holder BitMine Immersion Technologies now sits on more than $7 billion in unrealized losses after accumulating 4.28 million ETH at prices between $3,800 and $3,900.
Onchain data shows Trend Research held roughly 651,170 ETH in Aave-wrapped Ether at the start of the week. By Friday, that balance had fallen to about 247,080 ETH — a reduction of more than 404,000 tokens in just days.
Arkham Intelligence reported that over 411,000 ETH has been transferred to Binance since the beginning of the month, signaling active efforts to service liabilities and rebalance risk. The transfers coincided with Ether’s steep decline, which sent prices tumbling to lows near $1,748 before a modest rebound toward $1,967.
Trend Research’s strategy relied on leverage. The firm, linked to Liquid Capital founder Jack Yi, accumulated Ether, deposited it as collateral on Aave, borrowed stablecoins, and recycled the funds to buy more ETH. While profitable during uptrends, the structure left the firm vulnerable once prices reversed — a recurring risk pattern now confronting corporate ETH treasuries across the sector.
According to Lookonchain, Trend Research faces multiple liquidation bands between $1,698 and $1,562. Any renewed sell-off toward those levels could trigger automatic collateral sales, amplifying market pressure.
Yi acknowledged on X that his earlier call on the market bottom came prematurely but said risk management remains the priority. “I was early, but I’m still constructive long term,” he wrote, adding that the firm would continue to adjust exposure while waiting for conditions to stabilize.
Trend Research first entered the spotlight following the $19 billion crypto liquidation cascade in October 2025, when it began accumulating Ether aggressively. At its peak in December, the firm would have ranked among the world’s largest ETH holders, despite remaining absent from most public trackers because it is privately held.
Its rapid downsizing highlights a broader challenge: corporate ETH treasuries are increasingly being tested not by long-term fundamentals, but by short-term liquidity dynamics. When collateral values fall faster than debt can be reduced, even conviction-driven strategies are forced into defensive mode.
Market observers say the episode illustrates how leveraged accumulation can magnify both upside and downside. “Leverage works until it doesn’t,” said one DeFi risk analyst, noting that corporate players are now facing the same margin pressures long familiar to crypto-native traders.
Trend Research is not alone. BitMine Immersion Technologies, led by Fundstrat’s Tom Lee, is also under scrutiny as Ether’s decline pushes the firm deep into unrealized losses.
With roughly 4.28 million ETH on its balance sheet, BitMine is sitting on more than $7 billion in paper losses after Ether fell near $2,100. The company accumulated its holdings at significantly higher prices, making it one of the most concentrated bets among corporate ETH treasuries globally.
BitMine shifted from Bitcoin mining to an “Ethereum-first” treasury strategy in 2025, acquiring ETH at an estimated average price between $3,800 and $3,900. The market downturn has weighed heavily on both its crypto portfolio and its equity valuation, drawing comparisons to Michael Saylor’s Bitcoin-heavy Strategy during prior drawdowns.
Analysts say both cases reflect the inherent volatility risk embedded in single-asset treasury models. “Concentrated exposure amplifies conviction, but it also amplifies pain during corrections,” said a digital asset strategist at a European investment firm.
Despite the drawdown, Lee remains publicly confident. He has pointed to strengthening Ethereum fundamentals, including record transaction volumes and rising active addresses, as reasons to maintain exposure. BitMine currently controls roughly 3.55% of Ethereum’s total supply and has stated ambitions to reach 5% over time.
The firm is also expanding staking operations, with nearly $6.7 billion worth of ETH already staked. BitMine plans to launch its “Made in America Validator Network” in 2026, positioning itself to generate yield while supporting network security.
Supporters argue that such strategies represent a maturing phase of corporate ETH treasuries, where companies aim to treat Ether not just as a speculative asset, but as productive capital within a blockchain economy.
Still, recent events suggest the current market cycle may force a reassessment. As Ether volatility exposes leverage risk, more firms may opt for lower-debt structures, diversified holdings, or dynamic hedging strategies.
For now, corporate ETH treasuries remain caught between long-term belief in Ethereum’s growth and the immediate reality of price-driven balance-sheet stress. Whether this period becomes a temporary setback or a catalyst for more resilient treasury models will depend on how quickly firms adapt — and how the next phase of the crypto market unfolds.
What is clear is that the era of corporate crypto accumulation has entered a more disciplined phase. In today’s market, conviction alone is no longer enough. For corporate ETH treasuries, survival increasingly depends on liquidity management, leverage control, and the ability to withstand sharp, unforgiving drawdowns.
