BitMine Doubles Down on Ethereum Bet Amidst Billions in Paper Losses
In a bold move that defies the prevailing market gloom, BitMine Immersion Technologies (NASDAQ: BMNR) has purchased an additional 41,788 Ethereum (ETH) over the past week, valued at approximately $96 million. This acquisition comes even as the firm's massive ETH treasury is deep underwater, with paper losses exceeding $6 billion.
The latest buy brings BitMine's total holdings to a staggering 4.29 million ETH, representing over 3.5% of the cryptocurrency's circulating supply. According to its most recent SEC filing, the company's average purchase price sits near $4,001 per ETH. With Ethereum currently trading around $2,381, the holdings are worth about $9.9 billion against a cost basis of roughly $15.95 billion.
"Ethereum's on-chain activity and network fundamentals have strengthened considerably in recent months, yet the price tells a different story," said BitMine Chairman Tom Lee in a statement. He attributed the price weakness to the lingering effects of October's historic market liquidation event and a recent capital rotation into precious metals, which he claims has dampened risk appetite for digital assets.
Lee remains steadfast, framing the downturn as a strategic entry point. "We view this pullback as attractive," he stated, emphasizing BitMine's conviction that Ethereum's price fails to reflect its "high utility and its role as the future of finance."
The firm's confidence, however, has not shielded its stock from the downturn. Shares of BMNR fell another 5% on Monday, hitting their lowest level since mid-2025 when its treasury strategy first captured market attention.
Market Context & Analyst Reactions
BitMine's aggressive accumulation highlights a deepening divide in crypto investment strategies. While many institutions are retreating, some, like BitMine, are leveraging the bear market to build dominant positions in core assets. Ethereum itself is down roughly 52% from its August peak, presenting a high-stakes gamble for treasury managers.
Voices from the Community:
"This isn't conviction; it's desperation. Doubling down on a losing bet to try and average down a $4,001 cost basis is a classic sink-cost fallacy. Shareholders should be furious," said Marcus Thorne, a portfolio manager at Veritas Capital, his tone sharp with criticism.
"It's a high-risk, high-reward strategy. If ETH recovers to even half its ATH, BitMine's paper losses vanish. They're betting the company on Ethereum's long-term thesis, which, while risky, is logically consistent," commented Dr. Anya Sharma, a blockchain economist at the Digital Asset Research Institute.
"As a long-term holder, I find BitMine's moves reassuring. They're providing liquidity when the market needs it most and demonstrating real skin in the game. Short-term prices are noise," added David Chen, a crypto investor and podcast host.
The coming quarters will be critical in determining whether BitMine's strategy is visionary or folly, as markets watch to see if Ethereum's fundamentals can eventually catalyze a price recovery.