Yeliz Akmaca 
The crypto market’s broad sell-off is putting pressure on BitMine stock, BMNR. The company’s Ethereum-focused treasury strategy has now resulted in over $6 billion in unrealized losses as ETH prices have declined, prompting Board Chairman Tom Lee to defend the approach. He argued that the downturn is not an operational failure, but a feature of the strategy itself.
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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