BitMine Faces $7B Unrealized Loss as Ethereum Slides Below $2,100
BitMine Immersion Technologies, the Ethereum-treasury firm led by Fundstrat’s Tom Lee, is going through intensifying stress after a pointy drop in ether costs pushed the agency deep into unrealized losses. As of Feb. 5, Ethereum fell to an area low of $2,092, leaving BitMine’s holdings of roughly 4.285 million ETH with a paper loss exceeding $7 billion, -45% on its holdings.
The firm pivoted from Bitcoin mining to an aggressive “Ethereum-first” treasury technique final summer time, accumulating ETH at an estimated common price between $3,800 and $3,900. With ETH now buying and selling greater than 50% beneath its August 2025 all-time high of $4,946, BitMine’s as soon as $8.4 billion portfolio is considerably underwater, putting it on the middle of one in all crypto’s largest single-asset company bets.
BitMine and Strategy Both Under Water as Bear Market Deepens
The market response has been swift. BMNR shares have fallen alongside ETH, reviving comparisons with Michael Saylor’s Bitcoin-focused agency, Strategy (MSTR). However, each corporations at the moment are beneath stress. Strategy is presently sitting on an unrealized lack of roughly $2.70 billion on its Bitcoin holdings, based mostly on a median buy value of $76,052 and a present BTC value close to $70,500. MSTR shares are down about 9% previously eight hours, erasing roughly $3.7 billion in market worth.
While BitMine’s losses are bigger in absolute phrases, analysts be aware that each companies spotlight the dangers of concentrated treasury methods tied to risky crypto property.
Tom Lee Stays Bullish Despite Drawdown
Despite the “eye-watering” figures, Tom Lee stays publicly undeterred. Earlier this week, Lee described the drawdown as “a function, not a bug,” arguing that Ethereum’s long-term fundamentals stay intact. He pointed to file each day transactions of round 2.5 million and rising lively addresses as proof that community utilization is diverging from value motion.
Lee attributed current weak point to a post-October deleveraging cycle and capital rotation into treasured metals. BitMine has continued to double down, just lately including one other 41,000 ETH to its steadiness sheet, even as the Ethereum-treasury narrative faces its most extreme stress take a look at to this point.
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