Ethereum’s $1B DAT Dream Crashes Like a Bungle in the Jungle!

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An Asian Ethereum DAT project, which was as likely to succeed as a parrot wearing a top hat, has been cancelled after the bearish price trajectory, as reported by Wu Blockchain. 🐦💸

Ethereum’s $1B DAT: A Whale of a Tale That’s Now a Whale of a Miss

Last month, Bloomberg reported that some influential investors in Asia were gearing up to launch an Ethereum trust. The group involved the likes of Li Lin, founder of Huobi cryptocurrency exchange, Shen Bo, co-founder of Fenbushi Capital, and Xiao Feng, chairman and CEO of HashKey Group. 🐋💸

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. It’s like trying to build a spaceship with a rubber chicken and a dream. 🚀🥚

According to a report from Wu Blockchain, however, that project has now been cancelled. “The US$1 billion Ethereum DAT proposed by leading Asian crypto investors has been shelved, and the committed capital has been returned,” wrote Wu Blockchain. “Shelved” is a polite way of saying “abandoned like a toddler at a buffet.” 🍔👶

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. It’s like a fancy party where everyone brought a check but no actual cash. 💸💰

Popularized by Michael Saylor’s Strategy (formerly MicroStrategy), a DAT company is a public entity that makes a digital-asset reserve its main business. Earlier, firms mostly focused on using Bitcoin in this type of strategy, but 2025 has seen a push into altcoins like Ethereum and Solana. Because nothing says “innovation” like betting on a coin that’s as stable as a jellyfish in a hurricane. 🐙🌪️

BitMine, which is currently the largest ETH DAT and second-largest overall after Strategy, adopted its ETH reserve strategy in June of this year. According to a Monday press release, the company holds 3,559,879 tokens, bought for a total of $11.1 billion. That’s a lot of ETH, but not as much as the number of people who thought this was a good idea. 📉📈

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. “Sources” is a fancy word for “people who panicked and ran.” 🤷‍♂️📉

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. It’s like having a goldfish in a fishbowl and suddenly realizing it’s a goldfish. 🐠📉

The ETH network as a whole has its average cost basis (“Realized Price“) located at $2,316, as CryptoQuant community analyst Maartunn has pointed out in an X post. “Momentum is cooling off as the market takes a breather,” noted Maartunn. “Cooling off” is a polite way of saying “screaming into the void.” 🌡️💤

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. “Cooling off” is a polite way of saying “screaming into the void.” 🌡️💤

ETH Price

Ethereum has suffered another 5% drop in the past day that has sent its price to $2,880. “Another 5% drop” – “Another 5% drop, because nothing says ‘investment’ like watching your portfolio cry.” 📉😭

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2025-11-20 11:15