BitMine Immersion Technologies Inc. (BMNR) saw its stock plummet 5.02% in intraday trading on Thursday, following alarming comments from its own chair, Tom Lee, about the state of digital asset treasuries (DATs). The sharp decline comes amid growing concerns about the sustainability of cryptocurrency-focused investment strategies.

In a recent interview on Fortune's Crypto Playbook podcast, Lee warned that the DAT sector is "running out of steam" as valuations collapse. He pointed out that many firms in this space are now trading below their underlying asset value, suggesting that investors no longer view DATs as efficient vehicles for cryptocurrency exposure. "If that's not already a bubble burst, what is?" Lee remarked, raising questions about the future of companies like BitMine that have adopted this model.

BitMine, which rebranded from a mining company earlier this year, holds over three million Ethereum tokens, representing about 2.5% of the total supply. Despite the company's significant crypto holdings and Lee's assertion that Ethereum remains "the blockchain of Wall Street," investors appear to be reevaluating the premium they're willing to pay for such exposure. This shift in sentiment, coupled with Lee's candid assessment of the sector, likely contributed to today's sharp sell-off in BMNR stock. As the market digests these developments, it remains to be seen how BitMine and similar companies will navigate the changing landscape of institutional cryptocurrency investment.