BMNR fell about 2% at Tuesday’s close, while pre-market trading showed a near 1% drop.

Ethereum Treasury Pressures BMNR

According to market data, BitMine currently holds around 3.5% of circulating Ethereum supply, amounting to approximately $9.9 billion in ETH at today’s prices.

However, with ETH dropping to around $2,200, the company’s portfolio has lost significant value.

As of November 30, BitMine had accumulated roughly 3.7 million ETH at a cost close to $15 billion. The current valuation of these assets is $8.83 billion. This gap explains much of the selling pressure on BMNR stock. Still, the company is not stepping back.

On Monday, BitMine added 41,788 more ETH tokens to its treasury. Despite the losses, continued purchases highlight management’s commitment to their long-term Ethereum thesis.

Some institutional investors are also showing interest. Ark Invest, led by Cathie Wood, purchased around $6 million worth of BMNR shares, fueling speculation about “buying the dip.”

Tom Lee: “This Is Not a Mistake, It’s Strategy by Design”

In response to growing criticism, Tom Lee posted on X, emphasizing that the losses should be viewed in the context of strategy. BitMine is not a typical trading firm.

The company follows Ethereum prices and aims to outperform it over a market cycle.

“This model is index-like rather than tactical trading,” Lee explained, noting that unrealized losses during broad crypto pullbacks are inevitable.

He also questioned why this is considered an issue for BitMine but not for traditional index products:

“If crypto is down, ETH is down. Naturally, our balance sheet shows ‘unrealized’ losses. Why is this a problem here but not in index products?”

According to Lee, BMNR’s performance is closely tied to Ethereum, and the goal is long-term market cycle performance, not short-term price movements.

Market Takeaway: Risk Is High, Patience Is Key

BitMine’s situation resembles a “MicroStrategy for Ethereum.” The table shows how volatile institutional Ethereum strategies can be. Over $6 billion in paper losses test investor psychology, yet ongoing ETH purchases indicate management is not retreating.

Short-term pressure on BMNR is likely to continue. However, Ark Invest’s accumulation suggests a potential for balance over a longer horizon.

Without clarity on Ethereum’s price trajectory, it is difficult to predict a sustained recovery for BMNR. For now, the stock reflects a high-risk, high-expectation environment requiring patience.

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A whale that held 10,000 Ether for nearly 900 days has sold all of its holdings, potentially missing out on a maximum profit of $27.6 million. This amount was during the period when ETH exceeded $4,000.

On April 8, the blockchain analysis platform Lookonchain announced on X platform that this whale purchased a total of 10,000 ETH for about $13 million in October and November 2022, with an average purchase price of around $1,295.

Lookonchain stated, “Despite ETH surpassing $4,000, the whale did not sell. However, by selling today, it made a profit of $2.75 million, whereas at its peak, this profit could have reached $27.6 million.”

At the time of the sale, the price of ETH was around $1,578. According to CoinGecko data, ETH had reached a high of $4,015 on December 9 during the period when the whale held its ETH.

Currently, the price of ETH is around $1,426, and it has depreciated by 24% in the last seven days. The sharp decline is believed to be significantly impacted by the global trade tariffs announced during the Trump administration.

Did World Liberty Financial Sell ETH?

In another post on April 9, Lookonchain shared on X that a wallet potentially associated with World Liberty Financial, a project backed by Donald Trump, might have also sold Ether.

According to claims, this wallet sold 5,471 ETH, worth approximately $8.01 million, at a price of $1,465. Before this sale, the wallet contained a total of 67,498 Ether, which had been purchased at an average price of $3,259.

Other Whales Taking Action in the Market

During the sharp downturn in the crypto market, some investors made purchases while several large whales also executed noteworthy transactions.

On April 7, an unidentified investor had to add 10,000 ETH (worth around $14.5 million) to their position in order to prevent the 220,000 ETH (around $300 million) position from being liquidated.

However, not all investors were so fortunate. On April 6, a 67,570 ETH (approximately $106 million) position on the decentralized finance platform Sky was liquidated, leading to a significant loss for the investor.

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