An Asian Ethereum DAT project that was on the way has been cancelled after the bearish price trajectory, as reported by Wu Blockchain.
At the time, the investors were in talks to acquire a NASDAQ-listed entity to facilitate the digital-asset treasury (DAT) structure, with the project already boasting a backing of $1 billion.
Of the $1 billion backing, $200 million came from investment firm Avenir Capital alone, of which Huobi’s Li is a chairman. Another $500 million was provided by Asian institutional investors like HongShan Capital Group.
Unlike BitMine, the Asia-led DAT project appears to have been halted before it could launch. “Sources said the plan was halted mainly due to the market downturn following the sharp October 11 sell-off,” revealed Wu Blockchain.
Ethereum has been in freefall alongside the wider cryptocurrency sector since this crash, with its price being down over 38% compared to its October high. As a result, BitMine’s holdings have gone underwater. At the current exchange rate, its holdings are valued at $10.3 billion, roughly 7% below cost basis.
Given this, the average investor is still in a profit of about 24%. Earlier, when Ethereum was trading around its high, profitability reached an extreme level. So compared to that, there has been a bit of a cooldown. “Momentum is cooling off as the market takes a breather,” noted Maartunn.
Ethereum has suffered another 5% drop in the past day that has sent its price to $2,880.
