Bitmine Immersion Technologies (BMNR), the largest company holding ether ($ETH), is facing nearly $9 billion in unrealized losses as the token’s price fell below $1,800 again. The company, chaired by Tom Lee, saw its shares fall 5.9% on Wednesday, falling below $17. This extends its decline to 28% since the beginning of May, reaching levels not seen since the company announced its 2025 Ethereum treasury strategy.
The sell-off coincides with Ether retesting its February lows. The second largest cryptocurrency has lost more than 20% since the beginning of May. At the time, Lee, who is also a co-founder of Fundstrat, claimed that the market’s so-called “mini crypto winter” was likely over and a new “crypto spring” had begun.
Massive Ether Holdings Under Pressure
Under Lee’s leadership, Bitmine has accumulated more than 5.4 million ether in about a year. This represents approximately 4.5% of Ethereum’s circulating supply. At current prices, this position is worth around $10 billion. But these properties are deep underwater. According to DropsTab data, unrealized losses are estimated at $8.9 billion.
Bitmine’s situation highlights renewed tension in the digital asset treasury sector. Companies in this space are trying to replicate the playbook pioneered by Michael Saylor’s MicroStrategy (MSTR), which involves raising capital on public markets and using the proceeds to buy cryptocurrencies. This model has become more difficult to maintain as cryptocurrency prices weaken. Many Treasury stocks have drifted below the value of their underlying assets.
Main differences from other treasury companies
Bitmine’s approach differs in several important respects. The company financed its ether purchases primarily through equity issuance and not debt. This means it doesn’t have the debt and interest payment issues that some of its peers face. Bitmine also generates revenue by staking its ether. It operates a staking service called MAVAN. The company claims to have invested more than 4.7 million ether, or approximately 87% of its holdings. He recently estimated annualized staking revenue at around $276 million.
Recent price action has not changed Lee’s long-term outlook. Speaking at the Proof of Talk conference in Paris earlier this week, he said ether could eventually reach $250,000. He argued that tokenization, AI-driven transactions, and enterprise staking are reshaping Ethereum’s role in the global financial system.
For now, investors seem focused on a more immediate reality. Ether is back near levels last seen during the February sell-off. This leaves Bitmine’s cash flow deep underwater and highlights the gap between Lee’s long-term thesis and the market’s current view of the asset.
