Strategy and Bitmine Among Crypto Management Firms Facing Huge Unrealized Losses
According to The Block citing Artemis data, as cryptocurrency prices continue to decline, Michael Saylor's Strategy, Tom Lee's Bitmine, and other major digital asset management firms have turned to unrealized losses.
Hyperliquid, a fund management company, is currently the only institution still holding unrealized gains, with its NASDAQ-listed company Hyperliquid Strategies (PURR) holding approximately 23.7 million HYPE, resulting in unrealized gains exceeding $1.1 billion.
Another major holder, Hyperion DeFi, holds 2 million HYPE, equating to about $35 million in unrealized profits.
Market mechanisms indicate that crypto institutional investors are buying on dips and selling high-leverage positions; the event-driven Artemis data exposure and ongoing market adjustments have led capital flows to still-profitable HYPE-related assets and cash, benefiting Hyperliquid ecosystem holders while pressuring high-cost BTC/ETH concentrated institutions.
Source: Public Information
ABAB AI Insight
Strategy and Bitmine previously increased their BTC and ETH holdings at high prices, and with the recent price decline, they have turned to significant unrealized losses, continuing their typical "buy and hold" corporate reserve strategy in a bear market. In contrast, Hyperliquid's HYPE holders have become one of the few exceptions still in profit due to the relatively strong performance of the token.
In terms of capital pathways, Hyperliquid Strategies has locked in a large amount of HYPE through its NASDAQ listing, motivated by a long-term optimistic view on its ecosystem growth, strategically highlighting differentiated asset allocation advantages amid widespread industry losses, while also providing potential benchmark cases for other institutions.
Similar to a few projects in past cycles that profited against the overall bear market, current crypto management firms are in a transitional phase from concentrated high positions in BTC/ETH to diversifying into emerging assets. The profitability of Hyperliquid underscores the importance of track selection and timing.
Essentially, this reflects capital concentration: market adjustments reset the balance sheets of most institutions with unrealized losses, forcing high-cost holders to endure tests, and driving capital from overheated mainstream assets to emerging projects with growth potential, accelerating the reallocation of industry resources towards a few quality ecosystems.
ABAB News · Cognitive Law
A hundred billion in unrealized losses is a litmus test for the cycle, while a few profits signal track leverage.
When high positions encounter adjustments, asset selection outweighs holding scale.
In the differentiation of crypto management firms, those who first position in differentiated projects gain the pricing power of unrealized profits.