Introduction
Publicly traded crypto firm BitMine Immersion Technologies (BMNR) has doubled down on its Ethereum bet, purchasing an additional $96 million worth of ETH last week even as its unrealized losses on the cryptocurrency balloon to over $6 billion. The aggressive accumulation strategy, which has seen the firm amass more than 3.5% of Ethereum’s circulating supply, comes amid a severe price downturn that has hammered BMNR’s stock and raised questions about its treasury management. Despite the mounting paper deficit, Chairman Tom Lee remains steadfastly optimistic, arguing that Ethereum’s underlying fundamentals are strengthening even as its market price craters.
Key Points
- BitMine holds 4.28M ETH acquired at average $4,001, now worth just $8.8B versus $14.95B cost basis
- Firm's shares hit lowest level since July 2025, dropping 5% as ETH trades 52% below August ATH
- Chairman attributes ETH price decline to $19B October liquidations and investor rotation into gold/silver
A Costly Accumulation Strategy
According to data from its most recent SEC 10-Q filing, BitMine Immersion Technologies acquired another 41,788 Ethereum last week, valued at approximately $96 million. This latest purchase brings the firm’s total holdings to a staggering 4,285,125 ETH. However, this massive position is now a significant source of financial strain. The company’s average acquisition cost for its initial 3.7 million ETH was around $4,001 per token, representing a total investment of roughly $14.95 billion based on November 30 data. At Ethereum’s recent price of $2,381, that original stake is now worth just $8.8 billion, crystallizing a massive paper loss.
The firm’s continued buying in the face of this decline has only added to the unrealized losses. Estimations by Decrypt, using the price of ETH at the time each subsequent purchase was announced, indicate the acquisitions made since November 30 have racked up approximately $400 million in additional deficits. In total, BitMine’s unrealized losses now exceed $6 billion. This aggressive treasury strategy, which has made BMNR one of the largest corporate holders of Ethereum, is now under intense scrutiny as the crypto winter deepens.
Market Fallout and Leadership's Defense
The financial markets have reacted harshly to the growing gap between BitMine’s cost basis and Ethereum’s market value. Shares of BMNR fell more than 5% on Monday, recently trading at $23.83 and hitting their lowest level since a spike in July 2025 that was driven by news of the firm’s Ethereum treasury strategy. The pressure on BMNR shares mirrors the brutal downturn in ETH itself, which is down nearly 18% over the past week and trades roughly 52% below its all-time high of $4,946 set in August.
Despite the bleak numbers, Chairman Tom Lee is mounting a vigorous defense of the strategy. In a statement, Lee drew a distinction between price action and network health, arguing that current conditions differ from previous crypto winters. “During the crypto winter of 2021-2022 or 2018-2019, Ethereum transaction activity and active wallets declined, which is counter to what we have seen in the past 12 months,” Lee said. He attributes the price decline to two primary external factors: the continuing fallout from the record-breaking $19 billion in liquidations on October 10, and a recent surge in precious metals that has “sucked away risk appetite from crypto.” Last week, gold hit a new all-time high above $5,600 an ounce and silver surged past $150, though both have since retreated.
Lee’s conviction remains unshaken. “BitMine has been steadily buying Ethereum, as we view this pullback as attractive, given the strengthening fundamentals,” he stated. “In our view, the price of ETH is not reflective of the high utility of ETH and its role as the future of finance.” This stance frames the company’s continued purchases as a contrarian bet on a profound market mispricing, with leadership banking on a long-term convergence between Ethereum’s utility and its market valuation.
A High-Stakes Gamble on Crypto's Future
BitMine’s strategy represents one of the most concentrated corporate bets on a single cryptocurrency. Holding over 4.28 million ETH—more than 3.5% of the entire circulating supply—the firm’s fate is now inextricably linked to Ethereum’s price recovery. The $6 billion in unrealized losses highlighted in the SEC filing is not just an accounting figure; it is a measure of the risk the company has absorbed on behalf of its shareholders. The recent 5% drop in BMNR’s share price to multi-month lows suggests investor patience is being tested.
The immediate future presents a critical juncture. Ethereum has shown some minor resilience, up around 3.7% in the last 24 hours, but it remains deeply wounded from the recent sell-off. The central tension lies between Chairman Tom Lee’s narrative of strong on-chain fundamentals and the harsh reality of a market that has severely devalued the asset. BitMine is effectively betting that its analysis of Ethereum’s utility will be validated by the market before the weight of its unrealized losses forces a strategic rethink. For now, the company continues to buy the dip, doubling down on a vision of the future where Ethereum’s price finally reflects its purported role as the backbone of decentralized finance.
📎 Related coverage from: decrypt.co
