BitMine Immersion Technologies, the Ethereum-treasury company led by Fundstrat’s Tom Lee, is facing intensifying pressure after a sharp drop in ether prices pushed the firm deep into unrealized losses. As of Feb. 5, Ethereum fell to a local low of $2,092, leaving BitMine’s holdings of roughly 4.285 million ETH with a paper loss exceeding $7 billion, -45% on its holdings.
The company pivoted from Bitcoin mining to an aggressive “Ethereum-first” treasury strategy last summer, accumulating ETH at an estimated average cost between $3,800 and $3,900. With ETH now trading more than 50% below its August 2025 all-time high of $4,946, BitMine’s once $8.4 billion portfolio is significantly underwater, placing it at the center of one of crypto’s largest single-asset corporate bets.
BitMine and Strategy Both Under Water as Bear Market Deepens
The market reaction has been swift. BMNR shares have fallen alongside ETH, reviving comparisons with Michael Saylor’s Bitcoin-focused firm, Strategy (MSTR). However, both companies are now under pressure. Strategy is currently sitting on an unrealized loss of roughly $2.70 billion on its Bitcoin holdings, based on an average purchase price of $76,052 and a current BTC price near $70,500. MSTR shares are down about 9% in the past eight hours, erasing roughly $3.7 billion in market value.
While BitMine’s losses are larger in absolute terms, analysts note that both firms highlight the risks of concentrated treasury strategies tied to volatile crypto assets.
Tom Lee Stays Bullish Despite Drawdown
Despite the “eye-watering” figures, Tom Lee remains publicly undeterred. Earlier this week, Lee described the drawdown as “a feature, not a bug,” arguing that Ethereum’s long-term fundamentals remain intact. He pointed to record daily transactions of around 2.5 million and rising active addresses as evidence that network usage is diverging from price action.
Lee attributed recent weakness to a post-October deleveraging cycle and capital rotation into precious metals. BitMine has continued to double down, recently adding another 41,000 ETH to its balance sheet, even as the Ethereum-treasury narrative faces its most severe stress test to date.
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