Ether has plummeted over 25% in the past week, pushing BitMine, the world's largest corporate ETH holder, to an unrealized loss of $6.6 billion. Chairman Tom Lee took to X yesterday to address skeptics, reaffirming the company's financial health and its commitment to buying more. BitMine's total ETH stash has now exceeded 4.3 million ETH.
Tom Lee: Unrealized Loss Is a Feature, Not a Bug
In a series of posts, Lee explained that BitMine is designed to track ETH's price and outperform the market over the full cycle, with a core conviction that ether will rise. He noted that crypto is in a downturn, making ETH's dip natural. The paper losses on its ETH holdings are not a bug but a feature of the strategy. “Would we blame an ETF for taking losses?” he asked. His conclusion: “Ethereum is the future of finance.”
Buying the Dip: Another $46M Poured into 20,000 ETH
BitMine's average cost per ETH is estimated around $3,800, compared to the current price of roughly $2,250, leaving a significant gap to breakeven. Yet Lee emphasized that the company has zero debt and a healthy balance sheet. He cited surging L1 on-chain activity in 2026 as a strong fundamental signal, calling the current price “extremely attractive.” Late yesterday, BitMine spent another $46 million to buy 20,000 ETH, bringing its total holdings past 4.3 million. This move further lowers its average cost and underscores Lee's unwavering confidence.
The massive paper loss puts BitMine's strategy under heightened scrutiny, raising questions about its capital endurance and risk tolerance among investors.