Wall Street Boosts Exposure to Bitmine Immersion Technologies (BMNR) While DeFi Lenders Grapple with Liquidity Squeeze
Large institutional investors continued to increase holdings in the Ethereum‑treasury specialist Bitmine Immersion Technologies as the broader crypto market wrestles with a bear‑market‑driven liquidity crunch that is prompting several DeFi protocols to wind down operations.
Institutional Buying Amid a Steep Share‑price Decline
Form 13F filings for the fourth quarter of 2025 show that the most prominent holders of Bitmine Immersion Technologies – a publicly‑listed company that creates and manages Ether (ETH) treasury solutions – expanded their positions despite a 48 % slide in BMNR’s stock price during the quarter and a roughly 60 % decline over the past six months.
| Investor | Quarter‑end holding | Quarterly change |
|---|---|---|
| Morgan Stanley | ~12.1 million shares (≈ $331 m) | +26 % |
| ARK Investment Management | ~9.4 million shares (≈ $256 m) | +27 % |
| BlackRock | – | +166 % |
| Goldman Sachs | – | +588 % |
| Vanguard | – | +66 % |
| Bank of America | – | +1,668 % |
The increase in exposure was not limited to the top six holders. According to data aggregated from recent SEC filings, all of the eleven largest shareholders – including Charles Schwab, Van Eck, Royal Bank of Canada, Citigroup and BNY Mellon – reported larger BMNR positions at the end of the quarter. The buying activity occurred while BMNR traded near $19.90 in pre‑market action, well below its earlier 2025 highs.
Why the Accumulation?
Analysts suggest that institutional investors are treating BMNR as a strategic hedge against the long‑term value of ETH, which still commands a dominant role in decentralized finance. The company’s exposure to Ethereum’s staking yields and its regulated, listed status provide a degree of custody and compliance that many traditional funds find attractive, especially as they seek to re‑enter crypto‑related allocations after the market’s recent correction.
DeFi Liquidity Pressures Trigger Protocol Closures
While Wall Street is adding to BMNR, the DeFi ecosystem is contending with a stark liquidity shortage that has forced several high‑profile projects to cease operations.
ZeroLend – The Ethereum‑layer‑2 lending protocol announced a full shutdown, citing dwindling user activity and insufficient liquidity on the chains it operated on. The protocol’s founder, known as “Ryker,” explained that despite three years of development, the platform could no longer sustain its business model under current market conditions.
Parsec – The on‑chain analytics firm, which supplied data on DeFi and NFT activity, also closed its doors. Its CEO, Will Sheehan, attributed the decision to a “zig‑zag” market that diverged sharply from the patterns the company had previously tracked, particularly a post‑FTX collapse in leveraged DeFi lending and a sustained slump in NFT sales.
These closures reflect a broader trend: the contraction of capital that once flowed freely into high‑risk DeFi products. ETF data from Farside Investors shows three consecutive days of outflows from U.S. spot Bitcoin ETFs, culminating in a $165 million withdrawal on Thursday. Ether‑focused ETFs experienced a similar reversal, with $48 million of inflows on Tuesday turning into net outflows of $171 million by Thursday.
Market Context
- Bitcoin and Ether Prices: Both BTC and ETH posted modest gains of roughly 2.6 % over the past week, a rebound that appears limited against the backdrop of persistent ETF outflows.
- Regulatory Movements: While some DeFi projects are retreating, others are seeking regulatory clarity. DerivaDEX recently launched a Bermuda‑licensed derivatives exchange, positioning itself as the first DAO‑governed DEX with a formal test license from the Bermuda Monetary Authority.
- Tokenized Equity Growth: Kraken’s xStocks platform surpassed $25 billion in cumulative transaction volume, indicating that tokenized securities are gaining traction even as pure‑crypto DeFi faces headwinds.
Key Takeaways
- Institutional confidence in ETH treasury solutions remains strong despite ongoing market volatility; BMNR’s share price decline has not deterred major investors.
- Liquidity constraints are reshaping the DeFi landscape, with protocols like ZeroLend and Parsec exiting the market as user participation and capital inflows dwindle.
- ETF outflows signal a cautious stance among retail and institutional investors, even as spot BTC and ETH modestly recover.
- Regulatory engagement may become a differentiator, as projects such as DerivaDEX pursue licensed frameworks while others retreat from high‑risk activities.
- Tokenized equities are emerging as a parallel growth avenue, offering a more regulated pathway for capital to enter blockchain‑based assets.
The juxtaposition of Wall Street’s continued commitment to a regulated crypto treasury player and the retreat of high‑risk DeFi services underscores a maturing market where compliance and liquidity are increasingly decisive factors.
Source: https://cointelegraph.com/news/wall-street-boosts-bitmine-stakes-defi-lenders-buckle-liquidity-finance-redefined?utm_source=rss_feed&utm_medium=feed&utm_campaign=rss_partner_inbound
