BitMine (BMNR) Stock: Why Chairman Tom Lee Isn’t Worried About Massive Paper Losses

TLDR

• BitMine Immersion chairman Tom Lee says the company’s $6 billion unrealized ethereum losses are intentional, not a mistake.
• The firm holds 4.24 million ETH valued at $9.6 billion, down from $14 billion in October as crypto markets decline.
• Lee compares BitMine’s approach to an index fund, arguing paper losses are expected during downturns.
• The company added 41,788 ETH last week despite mounting losses, signaling continued commitment to its strategy.
• Lee warns crypto deleveraging could continue into early 2026 but believes the market is nearing a bottom.

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BitMine Immersion chairman Tom Lee is pushing back against critics. The company’s $6 billion in unrealized ethereum losses aren’t a problem, he says. They’re part of the plan.

Bitmine Immersion Technologies, Inc., BMNR

Lee defended the treasury company’s strategy in posts on X this week. He said the drawdown reflects the design of BitMine’s ethereum holdings, not poor execution.

BitMine holds 4.24 million ETH worth approximately $9.6 billion. That’s down from nearly $14 billion in October when ethereum traded at higher levels.

The company bought more than 40,000 ETH shortly before prices dropped further. The timing put a spotlight on its balance sheet risk.

Lee compared BitMine to an index product. He questioned why similar scrutiny isn’t applied to index funds when markets fall.

Treasury Strategy Under Pressure

BitMine positions itself as an ethereum treasury company, not a trader. The strategy centers on long-term ETH accumulation and staking yield rather than timing price moves.

That approach mirrors bitcoin treasury firms. They argue volatility comes with the territory when holding a core asset long-term.

But BitMine’s holdings are large. Price swings create outsized effects on reported results, especially during periods of thin liquidity.

The firm estimates annual staking revenue around $164 million. That provides limited protection during sharp price declines.

Lee warned crypto markets are still working through a deleveraging phase. He said it could extend into early 2026.

Gold and silver surged 37.4% and 106.9% before reversing sharply. Gold briefly topped $5,600 an ounce before its steepest one-day drop since 1983.

Buying Through the Downturn

Since Lee’s interview, crypto prices kept falling. Bitcoin traded at $77,357, down 11.8% over the week. Ethereum traded around $2,265, down more than 22% over seven days.

Lee pointed to technical analysis suggesting a potential bottom. Advisor Tom DeMark forecast Bitcoin falling to the high $70,000s and ether to around $2,400.

Lee said both price levels and timing have now converged, signaling a possible inflection point.

BitMine’s actions backed up Lee’s conviction. The company acquired 41,788 ETH worth roughly $96 million last week during the downturn.

The firm now holds more than 4.28 million ETH. That represents over 3.5% of Ethereum’s circulating supply.

Based on SEC filings, BitMine accumulated most holdings at an average price near $4,000 per ETH. Current prices sit around $2,265.

Lee maintains Ethereum network activity remains strong. He said active addresses and transaction activity are accelerating as Wall Street firms expand digital asset operations.

Last week, BitMine acquired 41,788 ETH worth roughly $96 million, bringing total holdings to more than 4.28 million coins valued at approximately $9.6 billion.

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