Yeliz Akmaca 
BitMine has reported a paper loss exceeding $6 billion following its recent Ethereum purchases. The company’s 4.24 million ETH portfolio, valued at $14 billion in October, has fallen to $9.6 billion due to sharp market declines and increased liquidations. This rapid drop highlights the risks of the company’s aggressive Ether accumulation strategy.
Losses Accelerate
Last week, BitMine added over 40,000 Ether to its portfolio. However, as prices quickly declined, the timing of this move became controversial. When liquidity tightens, large institutional crypto holdings can increase market volatility. On Saturday, Ether fell to $2,300, while sales across major tokens and mandatory liquidations in derivatives markets added further pressure. BitMine’s portfolio was directly affected, and its paper losses grew rapidly.
Similarly, Strategy, the largest institutional Bitcoin holder, is facing a challenging period. The company’s average BTC cost stands at $76,037, and Bitcoin prices falling below this level have pushed its roughly 700,000 BTC holdings into paper losses.
Lee Maintains Cautious Outlook
BitMine CEO Tom Lee says markets are still in a debt-reduction phase and conditions could remain challenging until early 2026. The sharp October sell-off—wiping out about $19 billion in market value—reshaped positioning in the crypto space. Lee remains cautious in the short term but maintains BitMine’s long-term growth objectives, helping investors navigate the market’s volatility.
Staking Income Fails to Offset Losses
BitMine earns approximately $164 million annually from staking a portion of its Ether holdings. However, network yield fluctuations are insufficient to offset large price drops. For investors, the paper losses in the company’s balance sheet highlight the sensitivity of crypto markets and liquidity shortages. The performance of Ether and other major tokens in the coming weeks will reflect the risks BitMine has taken.
BitMine’s aggressive accumulation strategy demonstrates how market volatility can directly impact institutional balance sheets. Investors and analysts will closely monitor these losses to shape future strategies.
You can also freely share your thoughts and comments about the topic in the comment section. Additionally, don’t forget to follow us on our Telegram, YouTube, and Twitter channels for the latest news and updates.