BitMine’s Ethereum treasury faces over $7 billion in unrealized losses – Cryptopolitan

Ethereum’s latest slide, coinciding with broader risk-asset deleveraging, is putting intense pressure on BitMine Immersion Technologies. The company’s concentrated Ethereum bet—one of the largest single-asset corporate treasury positions in crypto—has racked up heavy paper losses as market conditions weaken.

Market plunge deepens losses

Ether fell to a local low near $2,048 on February 5, pushing BitMine’s holdings deep underwater. The firm amassed roughly 4.28 million ETH through an aggressive accumulation strategy launched last summer, establishing an average cost basis estimated around $3,800–$3,900 per token. With prices sliding, unrealized losses now exceed $7 billion, reflecting a drawdown of more than 45% on the position.

From miner to Ethereum-first treasury

BitMine pivoted away from Bitcoin mining in mid-2025, rebranding as an Ethereum-focused treasury company. Since then, the balance sheet has been increasingly concentrated in ETH, a high-conviction approach that benefited from strong momentum last year but has been challenged by recent volatility and tightening liquidity conditions across digital assets.

Portfolio impact and market backdrop

Ethereum is trading more than 50% below its August 2025 all-time high of $4,946. BitMine’s ETH stack—once discussed as being worth billions at prior peaks—now carries a markedly lower paper value. Current estimates place the market value of the company’s holdings at under $9 billion versus an acquisition cost near $15 billion, illustrating the scale of the mark-to-market hit.

The broader crypto complex has also weakened, with the total digital asset market value recently dipping to around $2.4 trillion in one of the sharpest daily declines in years. ETH has struggled to hold the psychologically important $2,000 level amid persistent selling pressure.

Exposure at scale and mixed performance signals

On-chain and market data indicate BitMine is among the largest public holders of ETH, with an estimated 4,285,126 coins. Based on prevailing prices near $2,088 at the time of reporting, the treasury reflects a decline of more than 40% versus its average entry range, and ETH itself was down about 8% over the last 24 hours.

Even so, Ethereum’s performance gauges remain mixed. While near-term action has been volatile and skewed lower, snapshots from recent periods still show notable gains—approximately 29% week-over-week and 35% month-over-month—highlighting the market’s whipsaw nature.

Leadership response and continued accumulation

BitMine’s leadership, chaired by Tom Lee at the Ethereum Treasury, has publicly defended the strategy. He has framed the drawdown as a function of market structure and deleveraging, rather than an operational misstep. Comparing BitMine’s concentrated ETH exposure to an index-like approach, he questioned why similar passive strategies attract less scrutiny during downturns. He also pointed to post-October deleveraging and capital rotation into precious metals as added headwinds for ETH.

Despite mounting criticism, BitMine has continued to add to its position, recently acquiring more than 41,000 ETH, including a latest lot of approximately 41,788 tokens.

What to watch

• Key levels: ETH’s ability to reclaim and hold above $2,000 as sentiment stabilizes or deteriorates.
• Treasury moves: Whether BitMine moderates, hedges, or continues to scale its ETH exposure amid volatility.
• Liquidity and leverage: Ongoing deleveraging across crypto could amplify price swings in either direction.
• Macro flows: Shifts toward haven assets, rates dynamics, and risk appetite will likely influence ETH performance.

This article is for informational purposes only and does not constitute investment advice.