BitMine Doubles Down on Ethereum Bet Amid $6B Paper Loss, Citing Strong Blockchain Fundamentals
In a bold counter-move to last week's market sell-off, BitMine Immersion Technologies (BMNR), the world's largest Ethereum-focused treasury firm, aggressively added to its holdings. The company disclosed it purchased 41,788 ETH—worth approximately $96 million—marking its most significant weekly acquisition this year.
The purchase increases BitMine's total Ethereum stash to 4.29 million tokens, representing about 3.55% of the network's circulating supply. The firm's overall portfolio, which also includes Bitcoin, cash, and equity stakes, was valued at $10.7 billion after ether briefly dipped to around $2,300 over the weekend. The crypto's partial recovery to $2,360 on Monday coincided with BMNR shares hitting a seven-month low, down 5% in early trading. Analysts estimate the firm is now sitting on roughly $6 billion in unrealized losses across its positions.
Chairman Thomas Lee framed the strategy as a conviction play based on underlying network strength. "We're seeing a fundamental disconnect," Lee stated. "Ethereum's price weakness contrasts sharply with record-high daily transactions and active addresses. Previous bear markets, like in 2018 or 2021-2022, saw network activity decline alongside price. The current resilience is notable."
Lee attributed recent market pressure to a liquidity drain, citing lingering effects from last October's sector crash and a rotation into surging precious metals. Meanwhile, BitMine continues to leverage its holdings, having staked nearly 2.9 million ETH—about two-thirds of its total—to generate an estimated $188 million in annualized rewards.
Market Reactions:
"This is a classic 'be greedy when others are fearful' move," said Michael Chen, a portfolio manager at Horizon Digital Assets. "BitMine is betting that current on-chain metrics are a stronger long-term indicator than short-term price volatility. Their staking yield also provides a revenue cushion."
"It's reckless treasury management," argued Sarah Fitzpatrick, an independent crypto analyst and frequent industry critic. "Doubling down while sitting on $6 billion in paper losses and watching your stock tank is not strategy—it's desperation. They're trying to convince the market they see something no one else does, while liquidity is clearly fleeing to safer assets."
"The data Lee highlights is valid," noted David Park, a blockchain researcher at FinTech Insights Group. "High activity during price declines can signal accumulation or sustained utility. However, the scale of BitMine's concentrated bet makes it a high-stakes case study in corporate crypto strategy."