GM to all of you nutcases. It’s Crypto Nutshell #810 cuttin’ through noise… 🔪🥜

We’re the crypto newsletter that’s more savage than a man pushed past every limit just to survive… 🩸❄️

What we’ve cooked up for you today…

What’s in the Crypto Nutshell Portfolio?

BREAKING: Strategy and BitMine Keep Stacking as Combined Paper Losses Top $7 Billion

The two biggest crypto treasury firms just kept buying - even as billions in paper losses pile up.

Strategy added 855 Bitcoin last week for $75.3 million.

BitMine added 41,788 Ethereum worth $96 million.

Neither flinched as markets crashed around them. But the numbers underneath tell a different story.

Strategy brushes with breakeven

Strategy now holds 713,502 BTC - over 3.4% of Bitcoin's total supply. Average cost: $76,052 per coin.

Over the weekend, Bitcoin briefly dropped below $75,000. That put Strategy's entire position underwater for the first time since late 2023. (Important to note that this isn’t the first time that Strategy’s holdings have been underwater)

It's since recovered above $78,000, but the cushion is thin.

After spending $54 billion to build this stack, Strategy is sitting on just $1.2 billion in paper gains.

Its stock is down 67% from summer highs. Its market cap is now worth less than the Bitcoin it holds.

BitMine's $7 billion hole

BitMine's situation is a little more rough…

The firm holds 4.28 million ETH - about 3.55% of Ethereum's supply.

But its average cost is around $3,883 per token. With ETH now trading near $2,340, that's roughly $6.95 billion in unrealized losses.

Chairman Tom Lee isn't backing down. He says Ethereum's on-chain activity is at record highs, even as price falls - the opposite of past bear markets.

"In our view, the price of ETH is not reflective of the high utility of ETH and its role as the future of finance," Lee said.

Not everyone can hold

But some firms don't have that luxury.

Hong Kong-based Trend Research was forced to sell $79 million in ETH at a loss this week to manage its leverage.

The firm still holds 618,000 ETH but is sitting on over $500 million in unrealized losses.

Pantera Capital warned that 2026 could bring a "brutal pruning" of crypto treasury firms - where only the best-capitalized players survive.

Treasury conviction is well and truly being tested right now. 🚀

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Crypto sentiment is pretty awful right now.

Bitcoin drifting.
Altcoins bleeding.
Haters louder than ever.

Enter Eric Balchunas.

If you don’t know him, Balchunas is Bloomberg’s Senior ETF Analyst. His entire job is tracking institutional flows, market structure, and investor behaviour.

When it comes to how Wall Street actually allocates capital, there are few better people to listen to.

And this week, he basically told everyone to zoom out.

Here’s what he wrote:

Read that again.

Even after a rough stretch…

Bitcoin is still absolutely dominating the scoreboard.

Balchunas’ point is simple. People have short memories.

So what actually happened?

According to him, the institutional story didn’t fail.

It got priced in early.

In other words…

Price ran ahead of reality.
Now reality is catching up.

That’s not bearish. That’s what strong assets do after massive moves.

Markets don’t move in straight lines.

And sometimes the only thing investors really need…

is perspective. 🧭

Two in a row now…

Digital asset funds saw outflows for a second consecutive week, totalling $1.7 billion.

This has completely reversed year-to-date inflows, leaving net YTD flows at an outflow of $1 billion.

Let’s break it down.

The outflows were concentrated on Bitcoin last week which saw $1.32 billion exit.

Ethereum followed with $308.2 million in outflows.

Whilst XRP and Solana also saw outflows of $43.7m and $31.7m respectfully.

From a regional perspective, the US saw the majority of outflows with $1.65 billion leaving.

Canada, Sweden and the Netherlands also saw outflows of $37.3m, $18.9m and $3.8m respectively.

Investor sentiment continues to deteriorate…

In our opinion this is likely due to a combination of:

Sentiment still remains shaky.

Will GameStop Dump Its Bitcoin? CEO Says ‘Way More Compelling’ Move Ahead. GameStop moved its entire Bitcoin stash to an institutional exchange as CEO Ryan Cohen signals M&A now outranks crypto.

White House crypto meeting dug into stablecoin yield debate on market structure bill. Industry insiders met with Patrick Witt and others in President Donald Trump's administration to try to hash out the impasse over the Senate's crypto bill.

BTC Hits Record Undervaluation Amid ETF Outflows. Bitcoin price looks deeply undervalued, and as the selling pressure tapers off, some analysts believe BTC presents a golden buying opportunity.

Trump's 'personal intervention' likely needed to advance crypto market structure bill, TD Cowen says. And the more significant challenge is securing enough Democratic support in the Senate for the crypto legislation, TD Cowen added.

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Because what would the crypto world be without its share of memes?

Trivia Answer: 13 seconds 🥳

Ethereum's average block time under Proof of Work was roughly 13 seconds, much faster than Bitcoin's 10 minutes. After The Merge to Proof of Stake in September 2022, Ethereum switched to a fixed 12-second slot time.

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DISCLAIMER: The content of this newsletter is not financial advice. This newsletter is strictly educational and is not investment advice. Please be careful and do your own research.