BitMine Immersion Technologies is facing fresh pressure after reporting over $6 billion in unrealized losses linked to its Ethereum-focused treasury strategy. As the Ethereum price fell along with the broader crypto market, BitMine shares (BMNR) dropped another 5% on Monday, trading near $23.83, their lowest level since the stock jumped in July 2025 following the ETH treasury announcement.
The decline has raised concerns among investors, but company leadership says the reaction is missing the bigger picture.
Tom Lee Says Losses Are Part of the Plan
BitMine Chairman Tom Lee rejected claims that the losses show a failed strategy. In posts shared on X, Lee explained that the company is not trying to time the crypto market.
Instead, BitMine is designed to track and outperform Ethereum over a full market cycle, similar to how long-term index funds work in traditional markets. According to Lee, losses during market downturns are expected, not accidental.
He added that index funds are rarely criticized during bear markets — and BitMine should be viewed the same way.
Heavy Ethereum Holdings Increase Price Impact
BitMine’s large Ethereum holdings make the company especially sensitive to price swings. It currently owns around 4.24 million ETH, worth about $9.6 billion, down from nearly $14 billion at last year’s peak.
Despite the price drop, BitMine continues to buy more Ethereum. The company added 41,788 ETH in just the past week, showing strong confidence in ETH’s long-term value.
Because of this scale, even small ETH price moves can have a big impact on BitMine’s reported losses, especially during periods of market stress and forced selling.
Ethereum Staking Helps Offset Market Volatility
Rather than selling assets during downturns, BitMine earns income through Ethereum staking. The company expects to generate about $164 million per year from staking, with an average return of 2.81%.
As of February 1, around 2.9 million ETH — valued at nearly $6.7 billion — is actively staked. This provides steady income even when prices are weak.
Strong Balance Sheet With No Debt
One key advantage for BitMine is its debt-free balance sheet. The company reports:
- 193 Bitcoin holdings
- $586 million in cash
- $200 million stake in Beast Industries
- No outstanding debt
This financial position allows BitMine to hold through market downturns without being forced to sell Ethereum at lower prices.
Long-Term Ethereum Strategy Remains Unchanged
Looking ahead, BitMine plans to launch its MAVAN validator network in 2026, partnering with three staking providers to expand operations. Despite short-term pressure, Lee says the company’s belief in Ethereum remains strong.
His message is clear: price volatility is temporary, but Ethereum’s role in the future of finance is long-term. For BitMine, current losses are not a warning sign; they are the cost of sticking with a long-term Ethereum investment strategy.
Never Miss a Beat in the Crypto World!
Stay ahead with breaking news, expert analysis, and real-time updates on the latest trends in Bitcoin, altcoins, DeFi, NFTs, and more.
FAQs
BitMine holds about 4.24 million ETH. Because of this scale, even small ETH price changes significantly affect reported results.
Yes. BitMine has no debt, holds substantial cash, Bitcoin, and equity investments, giving it flexibility to weather market downturns.
Ethereum staking provides recurring revenue. BitMine expects roughly $164M per year, helping stabilize cash flow during crypto downturns.
No. BitMine has zero debt, strong cash reserves, Bitcoin holdings, and equity investments, supporting long-term crypto exposure.
Trust with CoinPedia:
CoinPedia has been delivering accurate and timely cryptocurrency and blockchain updates since 2017. All content is created by our expert panel of analysts and journalists, following strict Editorial Guidelines based on E-E-A-T (Experience, Expertise, Authoritativeness, Trustworthiness). Every article is fact-checked against reputable sources to ensure accuracy, transparency, and reliability. Our review policy guarantees unbiased evaluations when recommending exchanges, platforms, or tools. We strive to provide timely updates about everything crypto & blockchain, right from startups to industry majors.
Investment Disclaimer:
All opinions and insights shared represent the author’s own views on current market conditions. Please do your own research before making investment decisions. Neither the writer nor the publication assumes responsibility for your financial choices.
Sponsored and Advertisements:
Sponsored content and affiliate links may appear on our site. Advertisements are marked clearly, and our editorial content remains entirely independent from our ad partners.
