BitMine Adds $83M ETH Despite $7.5B Unrealized Losses

BitMine Immersion Technologies has solidified its position as a dominant holder of Ethereum on public markets. According to the data, the firm added 40,613 ETH last week, valued at approximately $83.2 million. This brings its total treasury to 4,325,738 Ethereum, worth over $8.8 billion at recent prices. This staggering figure means BitMine now controls about 3.58% of all circulating ETH, giving it significant exposure to the asset’s price movements. The purchase comes as Ethereum trades significantly below its all-time high of $4,946, reached in August, having recently fallen as low as $1,824 last week before rebounding to around $2,123.

In a statement, Chairman Tom Lee explicitly linked the buying strategy to the price decline. “BitMine has been steadily buying Ethereum, as we view this pullback as attractive, given the strengthening fundamentals,” Lee said. He further argued that the current price does not reflect “the high utility of ETH and its role as the future of finance.” This statement underscores a core investment thesis for the firm: that Ethereum’s intrinsic value and network utility justify accumulation during market downturns, regardless of short-term paper losses.

BitMine’s aggressive accumulation strategy has come at a significant cost. Data from the firm’s latest quarterly report filed with the SEC reveals an average acquisition cost of more than $4,000 per ETH for its first 3.7 million tokens. Factoring in estimates for purchases made since November 30, analytics platform DropStab calculates that BitMine currently sits on unrealized losses of almost $7.5 billion. This figure highlights the dramatic gap between the firm’s cost basis and the current market price, which would require a massive rebound for the position to become profitable.

The scale of these paper losses is reflected in the performance of BMNR stock. While shares were up around 3.5% on the day of the announcement, trading near $21.18, they are down approximately 59% over the last six months. This decline significantly outpaces the drop in Ethereum’s price over the same period, suggesting investor concern over the firm’s strategy and the weight of its unrealized losses on its balance sheet. The stock’s movement indicates that the market is pricing in the risk associated with BitMine’s concentrated, high-cost Ethereum treasury.

Chairman Tom Lee’s rationale extends beyond fundamental belief to a specific historical pattern. He predicts a sharp recovery for Ethereum, drawing on precedent. “ETH sees V-shaped recoveries from major lows. This happened in each of the eight prior declines of 50% or more. A similar recovery is expected in 2026,” Lee stated. He added that the “best investment opportunities” come after such declines. This forecast provides a timeline for the firm’s anticipated turnaround, pinning hopes on a major price rebound within the next few years.

This prediction is central to understanding BitMine’s high-conviction, high-risk strategy. The firm is effectively doubling down on its thesis during a bear market, using its treasury to increase its stake while prices are depressed. The success of this approach hinges entirely on Lee’s 2026 recovery prediction materializing. If Ethereum fails to stage a strong V-shaped recovery and reclaim levels above BitMine’s $4,000+ average cost basis, the firm’s substantial paper losses could become permanent, with significant implications for BMNR shareholders and its standing as a leading public crypto treasury.