Bitmine (BMR) & Sharplink Gaming (SBET) Drop on NASDAQ Scrutiny: What Investors Should Know

Bitmine (BMR) & Sharplink Gaming (SBET) Drop on NASDAQ Scrutiny: What Investors Should Know

The crypto-treasury trade is back in the spotlight, and not for the best reasons. On Thursday, Bitmine (BMR) shares fell around 8%, while Sharplink Gaming (SBET) dropped nearly 9%. Both declines follow a new wave of NASDAQ scrutiny aimed at companies raising capital to buy and hold cryptocurrency. Let’s break down what’s happening, why these names are sliding, and what it means for long-term believers in Ethereum and the crypto-equity space.

Why Crypto Treasury Stocks BMNR & SBET Crashed

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Why Are Crypto Treasury Stocks Falling?

In September 2025, reports surfaced that NASDAQ is tightening oversight on listed companies using public capital to buy crypto. The exchange may require shareholder approval for stock sales aimed at crypto purchases, and could even suspend or delist firms that fail to comply.

While that sounds harsh, the intent is simple: to weed out scammy companies inflating valuations by using treasuries as little more than hype vehicles. For legitimate firms, more transparency could ultimately build confidence. But in the short term, the market sold off aggressively.

• Bitmine (BMR): Down 70% from July highs, though still up 488% YTD.

• Sharplink Gaming (SBET): Off 61% from July, with further downside risk on technicals.

• MicroStrategy (MSTR): Slightly pressured, but still viewed as the benchmark Bitcoin treasury stock.

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Bitmine: Ethereum’s Biggest Corporate Holder

Bitmine isn’t just another name in the space—it’s the largest Ethereum (ETH) treasury holder globally, with $8.98 billion in crypto and cash, including nearly $2 billion worth of ETH tokens. Since launching its ETH strategy in June 2025, the company has seen explosive growth, at one point delivering a 30x return within a week of its treasury announcement.

What’s Driving the Strategy?

• Target: Own 5% of the Ethereum network.

• Vision: Ethereum as the backbone of tokenized assets, stablecoins, and financial rails.

• Upside: Internal estimates suggest ETH could one day be worth $60,000 per token, driven by tokenization, staking, and AI convergence.

Of course, this is speculative. Ethereum was worth just $90 in 2018 before rocketing 54x in the next cycle. But as market cap expands, repeating that magnitude of return becomes harder. Still, a 10x or 15x from here would be transformative for BMR shareholders.

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Sharplink Gaming: The Challenger

Sharplink Gaming, or SBET, is positioning itself as another Ethereum treasury vehicle. The company has rolled out a dashboard tracking ETH holdings, staking rewards, and net asset value. They’ve also announced a $1.5 billion share buyback, though some argue capital would be better spent on accumulating more ETH while prices remain relatively low.

Unlike Bitmine, SBET has less Ethereum exposure, which may cap upside. Still, if ETH climbs to $10,000 or beyond, SBET stockholders could see significant leverage.

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The Bigger Picture: Risk and Reality

• Short-term: Stocks like BMR and SBET are under pressure from regulatory scrutiny and technical weakness.

• Medium-term: Ethereum’s adoption curve, stablecoin growth, and tokenized finance will determine if the treasury model pays off.

• Long-term: If ETH approaches $60,000 as Bitmine suggests, both BMR and SBET could deliver multibagger returns.

But timing matters. Adoption won’t happen overnight. Investors need to balance the hype of “54x charts” with patience, discipline, and risk management.

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Final Take

Thursday’s drop wasn’t about fraud or collapse—it was about regulation catching up. And while the market reacts negatively now, stricter rules could help separate real innovators from opportunists.

For investors, the question isn’t whether Ethereum has a future. It’s which vehicle—BMR, SBET, or even MicroStrategy—offers the right balance of exposure, leverage, and credibility for your portfolio.

Crypto treasury stocks are high-risk, high-reward. The upside may be massive, but so is the volatility. As always, conviction, research, and a long-term mindset are key.