BitMine, the digital asset treasury firm led by Tom Lee, is facing unrealized losses of approximately $5.8 billion on its massive Ethereum holdings but continues to accumulate the asset, framing the losses as a deliberate part of its long-term strategy. According to on-chain intelligence firm Arkham, BitMine holds its current ETH at a significant loss, having purchased at an average price of around $3,650 while the market price hovers near $2,300.
Despite the steep paper losses, the company has persisted in buying. Arkham data shows a wallet associated with BitMine recently received $46.04 million worth of ETH, and the company purchased an additional $40 million in tokens. BitMine is among the largest institutional holders of ETH, with 243,765 ETH in its reserves, all of which is currently "in the red." The firm's unrealized losses on these holdings total roughly $560 million.
In response to social media criticism regarding the multi-billion dollar losses, Chairman Tom Lee defended the strategy in an X post. He argued that the criticism "misses the point of an ethereum treasury," explaining that BitMine is designed to track the ETH price and outperform it over a full market cycle. "With the market currently being in a downturn," Lee stated, "unrealized losses on the company’s holdings are to be expected during such periods. This isn’t a bug, rather 'it’s a feature.'" He compared the situation to index exchange-traded funds (ETFs), questioning if they should be similarly criticized for losses during downturns.
BitMine began its Ethereum accumulation strategy in June/July of last year, and none of its purchases have yet turned profitable. The firm employs a dollar-cost averaging strategy on an institutional scale, with each new purchase slightly reducing its average entry cost. Furthermore, BitMine has been rapidly locking up its ETH supply for staking to generate passive income. The company has already staked 2,897,459 ETH, representing roughly 67% of its total holdings.
Analysts point to bullish macro conditions that could support a future reversal. Commentators like 0xChainMind note that ETH is respecting its long-term rising channel, the ISM manufacturing index is above 50 (indicating economic expansion), and global liquidity is expanding—a historical precursor to strong ETH trend acceleration. This backdrop suggests BitMine's unwavering accumulation, despite deep losses, signals a firm long-term conviction in Ethereum's prospects.
