BitMine Buys $83M More ETH Despite $7.5B Unrealized Loss
BitMine Immersion Technologies, chaired by Tom Lee, purchased about 40,613 ETH (~$83.2M) during last week’s sell-off, increasing its treasury to 4,325,738 ETH (~$8.8B), roughly 3.6% of circulating supply. SEC filings and DropStab data show BitMine’s earlier purchases average above $4,000 per ETH for roughly 3.7M tokens, leaving the company with estimated unrealized losses near $7.5–7.8 billion. Around 2.9M ETH are reported staked, producing a modest staking yield. Tom Lee called the pullback a buying opportunity, citing ETH’s utility and historical V-shaped recoveries after sharp drawdowns. ETH fell from its August high (~$4,946) to as low as ~$1,824 last week before recovering toward ~$2,100. BitMine’s stock (BMNR) showed intraday gains but remains materially down over recent months. For traders: the purchase signals a large, long-term institutional conviction in ETH demand, but the sizeable unrealized loss and concentrated exposure increase downside risk if prices stay depressed. Primary keywords: BitMine, ETH, Tom Lee, ETH treasury, unrealized losses. Secondary keywords: crypto crash, staking yield, DropStab, treasury buying.
Neutral
The news is market-neutral for ETH price in the short term and potentially bullish in the long term, with important caveats. Positive signals: BitMine’s spot accumulation during the dip demonstrates large institutional conviction and provides a steady bid beneath ETH; staking of ~2.9M ETH removes supply from daily circulation, marginally tightening available float. Tom Lee’s public framing of the purchase as a buying opportunity can support sentiment among retail and institutional buyers. Negative signals: BitMine’s large average acquisition cost (above $4,000) and an estimated $7.5–7.8B unrealized loss create selling pressure risk if the firm or other holders cut exposure or investors view the position as impaired. The concentrated holding (3.6% of supply) increases liquidity and market-impact risk during stress. Short-term impact — likely neutral to mildly bearish: price could remain volatile and see downward pressure if broader risk-off persists or if the firm signals need to realize losses. Long-term impact — potentially bullish: continued treasury buying and staking reduce available supply and signal conviction, which can support price recovery if macro conditions and on-chain demand return. Overall, the offsetting factors (institutional buy vs. large underwater position and concentration risk) justify a neutral classification focused on ETH price.