BitMine Immersion Technologies Inc. (BMNR) experienced a significant 24-hour plunge of 5.05% following alarming comments from its own chair, Tom Lee, regarding the state of digital asset treasuries (DATs). The sharp decline comes amidst growing concerns about the sustainability of companies holding large cryptocurrency reserves as their primary business model.

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 a potential bubble burst in the market. This statement is particularly significant coming from Lee, whose company, BitMine, holds over three million Ethereum tokens, representing about 2.5% of the total supply.

The bearish outlook from BitMine's chair appears to have shaken investor confidence, despite the company's ambitious goal to expand its Ethereum holdings to 5% of the total supply. Lee's comments highlight the growing skepticism surrounding DATs, which once promised a new way for companies to gain crypto exposure but are now facing mounting challenges. 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.