Bitmine Faces Major Losses on Ethereum Holdings

TLDR

• Bitmine holds 4.285 million ETH, 3.55% of total supply.
• Current losses range from $6.5 to $6.9 billion.
• Daily Ethereum transactions reached an all-time high of 2.5 million.

Bitmine Immersion Technologies has found itself in a challenging position as its Ethereum holdings face significant losses. The company, led by Executive Chairman Thomas “Tom” Lee, holds 4.285 million ETH, representing 3.55% of the total supply. These assets were acquired at an average price of $3,800–$3,900 per ETH. With current ETH prices ranging between $2,200 and $2,400, Bitmine is experiencing an unrealized loss ranging from $6.5 to $6.9 billion.

Originally a Bitcoin mining company, Bitmine pivoted to focus on an Ethereum treasury strategy back in June 2025. The firm aims to control 5% of the total ETH supply. Out of its holdings, 2.897 million ETH have been staked, generating an annual yield of $374 million at a 2.81% Compounded Effective Staking Rate (CESR).

Current Market Dynamics for Ethereum

The decline in Ethereum prices follows a month-long drop, with ETH falling from around $3,000 to approximately $2,300. Despite this dip, Ethereum network activity reached new heights. Daily transactions hit an all-time high of 2.5 million, and the number of active addresses ballooned to 1 million per day in 2026. These metrics illustrate robust use of the network despite price volatility.

In a recent statement, Thomas “Tom” Lee addressed the current market conditions: “ETH prices have dropped sharply in the past month from ~$3,000 to ~$2,300. This occurred while Ethereum daily transactions hit an all-time high (ATH) of 2.5mm and active addresses soared in 2026 to an ATH to 1 million daily.” Bitmine continues to acquire Ethereum, having purchased an additional 41,788 ETH in the past week.

Bitmine’s Strategic Positioning

Bitmine remains optimistic about its strategic positioning and the potential for a market rebound. According to Tom Lee, “All the pieces are in place for crypto to be bottoming right now.” The company has been consistently purchasing Ethereum during this downturn, emphasizing its belief in the strengthening fundamentals of the blockchain.

“In the past week, we acquired 41,788 ETH… Bitmine has been steadily buying Ethereum, as we view this pullback as attractive, given the strengthening fundamentals.”

Thomas “Tom” Lee, Executive Chairman, Bitmine Immersion Technologies

Impact on Ether and Industry Comparisons

Bitmine’s significant position in Ethereum draws parallels to other historical financial events involving large holdings. Comparisons have been made to incidents such as JPMorgan’s London Whale and Long-Term Capital Management. There is concern that a potential forced sale of Ethereum could lead to a price drop ranging from 20% to 40% due to massive slippage compared to daily volumes.

Bar none, Bitmine Immersion Technologies holds the largest Ethereum treasury globally. Its position ranks it second among global crypto treasuries, right behind MicroStrategy’s Bitcoin holdings. No other cryptocurrencies or assets are known to be significantly impacted, as Bitcoin or other altcoins aren’t part of Bitmine’s primary holdings or strategy.

Future Outlook and Developments

The company’s current portfolio values its Ethereum holdings between $9.2 billion and $10.7 billion as opposed to the originally invested $15.7 billion. Its total assets, including cash and other investments, are reported at $10.7 billion. The company’s recent staked ETH increased by 888,192 tokens in the past week, with annual staking revenues seeing an 18% boost weekly.

No specific regulatory updates or community feedback have emerged concerning Bitmine’s strategy. However, the broader crypto industry closely follows these developments, which are unrestricted by current policy changes from agencies like the SEC or CFTC.