Digital vault management company Trend Research has significantly reduced its Ethereum holdings following the recent market decline, moving large amounts of Ethereum to exchanges as it seeks to pay down its outstanding debt.
Key points:
- Trend Research sold over 400,000 Ether and moved significant holdings to exchanges to manage debt after the price fell.
- Ethereum’s nearly 30% drop during the week pushed leveraged positions close to liquidation thresholds.
- The decline also affects other Ethereum treasuries, highlighting the risks of concentration in cryptocurrency holdings.
Blockchain data showed that the company had approximately 651,170 ether in the form of wrapped ether on Aave (aWETH) on Sunday. As of Friday, the balance had fallen to around 247,080 ether, a drop of more than 404,000 in less than a week.
Onchain analytics platform Arkham reported that 411,075 Ether had been transferred to Binance since the start of the month.
Ethereum drops nearly 30% in a week before partially recovering
The move coincided with a sharp decline in the price of Ethereum, which fell around 30% over the past week to a low near $1,748 before rallying back to around $1,967.
Trend Research constructed its position using a leveraged strategy. The company, linked to Liquid Capital founder Jack Yee, purchased Ethereum and placed it as collateral on the Aave lending protocol to borrow stablecoins, then used the borrowed funds to purchase more Ethereum.
The market decline put the position under pressure. According to Look on Chain, the company is facing several potential liquidation levels between $1,698 and $1,562, meaning further price drops could lead to collateral being automatically sold on the lending platform.
Three major on-chain liquidation zones on $ETH.
Trend Research holds 356,150 $ETH($671M), with clearance prices between $1,562 and $1,698.
Joseph Lubin and two unknown whales hold 293,302 $ETH($553M), with clearance prices between $1,329 and $1,368.
7 brothers and sisters hold… pic.twitter.com/GFwEAZSodC– Lookonchain (@lookonchain) February 6, 2026
Yi acknowledged in an article on the
Trend Research first gained attention after the massive $19 billion round of cryptocurrency liquidations in October 2025, when it began aggressively accumulating Ethereum.
At one point in December, the company was reportedly one of the largest holders of Ethereum in the world, although it does not appear in most public company cash tracking tools because it is privately owned.
BitMaine Tests $7 Billion Paper Loss Ethereum Vaults Business Strategy
Immersion company BitMine Technologies, led by Fundstraat’s Tom Lee, is also facing pressure after a sharp drop in the price of Ethereum pushed the company into large unrealized losses.
With approximately 4.28 million ether on its balance sheet, the company is facing paper losses of over $7 billion after the coin’s price fell to nearly $2,100.
The company had accumulated its holdings at much higher prices, making it one of the biggest corporate bets in the cryptocurrency space.
The company transitioned from Bitcoin mining to an “Ethereum-first” treasury model in 2025, purchasing Ethereum at an estimated average price of $3,800 to $3,900.
The market decline sent both his portfolio and his stock price lower, drawing comparisons to Michael Saylor’s heavily Bitcoin strategy, which is also facing large unrealized losses.
Analysts say both companies highlight the risks of concentrated crypto cash strategies tied to volatile assets.
Despite the decline, Lee remains confident. He claims that Ethereum’s fundamentals are strengthening, highlighting record transaction activity and an increase in active addresses.
Owns the business now Around 3.55% of Ethereum supply It aims to reach 5% while developing staking operations.
$6.7 billion worth of Ethereum is currently at stake and Bitmine plans to launch its made-in-America validator network in 2026.
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