Bitmine Immersion Technologies is facing increasing pressure after taking on large unrealized losses due to the plummeting price of Ether. The Ethereum Treasury, chaired by Fundstrat’s Tom Lee, is at the center of one of the largest single-asset corporate bets in crypto history as market conditions continue to slump.
Ether hit a local low of around $2,048 on February 5th, and Bitmine’s holdings went underwater. The company holds approximately $4.28 million $ETHwas set aside as part of an aggressive financial strategy adopted last summer. As a result, unrealized losses now exceed $7 billion, with more than 45% of positions written off.
Ether crash tests Ethereum treasury strategy
BitMine exited Bitcoin mining in mid-2025 and rebranded as an Ethereum-focused finance company. Since then, it has steadily increased $ETH The average estimated price is $3,800 to $3,900 per token. However, the market environment has changed significantly.
Ether is currently trading down more than 50% from its all-time high of $4,946 in August 2025. As a result, BitMine's portfolio, once valued at $8.4 billion, has lost most of its paper value. According to market data, the company's $ETH The value of its holdings is now less than $9 billion, compared to an estimated $15 billion acquisition cost.
Additionally, widespread vulnerabilities in the cryptocurrency space are adding to the pressure. The global digital asset market recently fell to around $2.4 trillion, one of the largest daily declines in years. Ethereum has followed suit, struggling to sustain the psychologically important $2,000 level amid continued selling pressure.
On-chain Data reveals unrealized scale loss
On-chain analytics companies have taken note of the size of BitMine's exposure. According to data cited by Lookonchain, the company is the largest public holder of Ethereum, with unrealized losses exceeding $7 billion.
CoinGecko estimates that BitMine holds 4,285,126 $ETHits current market value is approximately $8.93 billion. Based on the average purchase price of approximately $4,001 per coin, the company's financials have fallen by more than 40%. as $ETH Trading around $2,088 at the time of writing, daily losses have been accelerating, with the token down about 8% in 24 hours.
Still, Ethereum's long-term performance sends mixed signals. Although the situation has been unstable in recent weeks, $ETH Gains of approximately 29% per week and 35% on a monthly basis have been recorded.
Defended by Tom Lee drawdown
Despite the growing criticism, Bitmine's management has continued to invest in its strategy. Tom Lee publicly defended the company's approach, pointing out that the downsizing was a reflection of market structure rather than an operational error. In a recent post on X, he discussed paper losses as a predictable consequence of cryptocurrency declines.
These tweets miss the point of Ethereum Treasury.
– BitMine is designed to track prices. $ETH
– Excellent performance throughout the cycle (think about it) $ETH)
– Naturally, virtual currencies are in a slump. $ETH $BMNR will fall and there will be an “unrealized loss” on our assets. $ETH During these times:
-… https://t.co/VpoNjAnJdC— Thomas (Tom) Lee (not the drummer) FSInsight.com (@fundstrat) February 3, 2026
Lee compared the BitMine revelations to: $ETH I asked why passive investment vehicles aren't subject to the same scrutiny when markets are collapsing. He also cited deleveraging and capital inflows into precious metals since October as other factors contributing to Ethereum's downturn. Importantly, BitMine continues to add to its holdings. The company has recently acquired more than 41,000 companies. $ETHthe latest lot of approximately 41,788 tokens.
