BitMine Immersion Technologies (ticker: BMNR), a publicly traded company chaired by Fundstrat’s Tom Lee and often compared to a “MicroStrategy for Ethereum,” is currently facing massive unrealized losses on its Ethereum (ETH) holdings amid a sharp crypto market downturn.
Recent reports indicate that BitMine’s unrealized losses on its ETH stockpile have reached approximately $6.6 billion with some sources citing figures around $6B to $6.95B or nearing $7B. This positions it as one of the largest paper losses in crypto treasury strategies if realized.
BitMine holds around 4.24 million ETH roughly 3.5% of Ethereum’s circulating supply, with recent additions including over 40,000 ETH in the past week despite falling prices. The treasury is valued at about $9.6 billion based on ETH trading near $2,300–$2,400, down from peaks around $13.9B–$14B in late 2025.
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Average acquisition cost: Estimated around $3,600–$3,883 per ETH, leading to the deep drawdown as ETH has slid toward multi-month lows near $2,200–$2,300 in recent trading. The losses stem from aggressive accumulation during higher prices, followed by a broader market sell-off that erased hundreds of billions in crypto value, with thin liquidity and leveraged positions amplifying the drop.
These are unrealized (paper) losses, meaning they only become actual if BitMine sells at current levels. The company has continued buying during the dip, with Tom Lee remaining bullish on ETH’s long-term potential previously targeting higher prices like $7,500+.
However, this has drawn scrutiny over concentration risk, as the firm’s balance sheet is heavily tied to ETH performance. BitMine’s stock (BMNR) has reacted negatively, dropping significantly in recent sessions ~12% in one premarket period, and the situation highlights risks in corporate crypto treasury plays—especially compared to more diversified peers.
This mirrors broader market stress, with similar pressures on other ETH-focused treasuries. If ETH recovers, these losses could shrink dramatically; if not, it could test investor patience and lead to a “pruning” among such firms in 2026.
The $6.6 billion (or figures ranging $6B–$6.95B+) in unrealized losses on BitMine Immersion Technologies’ (BMNR) Ethereum holdings represents one of the largest paper losses in corporate crypto treasury strategies to date.
This stems from holding ~4.24 million ETH about 3.5% of circulating supply, acquired at an average cost of roughly $3,600–$3,883 per ETH, while ETH trades near $2,200–$2,400 amid a broader market sell-off involving liquidations, thin liquidity, and deleveraging.
These losses remain unrealized—they only crystallize if BitMine sells at current levels. The company, chaired by Tom Lee, has continued aggressive accumulation like adding >40,000 ETH recently and staking over 2 million ETH staked, generating yield, signaling long-term conviction in Ethereum’s fundamentals despite short-term pain.
The treasury is heavily tied to ETH performance, making the balance sheet and stock price a near-direct proxy for ETH volatility. Losses have pushed the firm’s market NAV close to or below 1x in some estimates, complicating equity raises via share issuance.
BMNR shares dropped sharply ~10–12% in premarket/early trading on February 2, 2026, reflecting investor concerns over the drawdown and governance. The stock trades with high volatility, often at a discount or premium to NAV depending on sentiment.
Continued buying/staking could amplify recovery if ETH rebounds (Tom Lee remains bullish on long-term upside, e.g., prior high targets). However, prolonged weakness risks further dilution, forced adjustments, or “pruning” among weaker treasury plays, as predicted by some analysts.
No signs of margin calls or forced liquidation yet, but leverage in the broader ecosystem adds tail risk. A hypothetical forced sale of BitMine’s holdings could cause significant slippage potentially 20–40% further downside in extreme scenarios, exacerbating sell-offs due to thin order books. This highlights risks in large concentrated positions during deleveraging events.
The headline loss (one of the biggest documented in crypto treasuries) fuels bearish narratives, contributing to ETH’s slide toward multi-month lows and cascading liquidations > $485M in ETH longs recently. It underscores how corporate strategies can magnify volatility.
Some whales have bought the dip, and staking locks up supply reducing sell pressure long-term. If ETH recovers via adoption, yield narratives, or macro shifts, losses could reverse dramatically—similar to past cycles. Aggressive accumulation works in bull markets but exposes firms to brutal drawdowns when leverage unwinds or liquidity dries up.
Compared to peers (e.g., diversified miners or Bitcoin-focused treasuries), pure ETH plays show higher risk from altcoin volatility. 2026 could see a shakeout: Well-capitalized players survive and consolidate, while over-leveraged or concentrated ones struggle—potentially leading to M&A, pivots, or exits.
This is a high-stakes test of conviction in Ethereum’s long-term story versus near-term market stress. Tom Lee and BitMine appear committed to holding/accumulating through the dip, betting on recovery and staking yields to offset losses. If ETH stabilizes or rebounds, the position could become a massive win; otherwise, it risks becoming a cautionary tale for corporate crypto bets.