Bitmine Immersion Technologies (BMNR), the largest corporate holder of ether (ETH), is staring at nearly $9 billion in losses as the token’s drop below $1,800 drags down the value of its huge treasury.
Shares in the company led by Tom Lee fell another 5.9% on Wednesday, falling below $17 and extending their decline to 28% since early May. The stock has now fallen below its February low to its weakest level since the company announced its pivot to an Ethereum financial strategy in 2025.
The selling comes as ETH retests its February lows. The second-largest cryptocurrency has lost more than 20% since early May, when Lee, Fundstrat’s co-founder and BitMine’s chairman, argued that the market’s “mini-crypto winter” was likely over and a new “crypto spring” had begun.
Under Lee’s leadership, Bitmine has amassed more than 5.4 million ETH, or about 4.5% of Ethereum’s circulating supply, in about a year. This position is worth about $10 billion at current prices.
However, those holdings are now deep underwater and carry an estimated $8.9 billion in unrealized losses, according to data compiled by DropsTab.
Treasury for digital assets under pressure
Bitmine’s drawdown highlights renewed pressure across the digital asset management sector, where companies are looking to replicate the playbook pioneered by Michael Saylor’s MicroStrategy (MSTR): raise capital through public markets and use the proceeds to accumulate crypto.
This model has become increasingly difficult to sustain as crypto prices weakened and many government stocks drifted below the value of their underlying assets.
Strategy itself recently unveiled its first bitcoin sale since 2022, sparking debate about how the company could fund future obligations tied to its preferred stock offering.
Read more: Saylor’s Strategy sold bitcoin for first time since 2022. These firms are still buying
Bitmine’s situation differs on some important points. The company financed its ether purchases primarily through the issuance of equity rather than debt, leaving it without the leverage issues and interest payments faced by some financial peers.
The company also generates revenue from staking its ETH and running its staking service MAVAN. Bitmine said it has staked more than 4.7 million ETH — about 87% of its holdings — and recently estimated annual staking revenue at about $276 million.
Lee demands $250,000 ETH
The recent price action has not dampened Lee’s long-term outlook.
Speaking at the Proof of Talk conference in Paris earlier this week, he said ETH could eventually reach $250,000 as tokenization, AI-powered transactions and corporate efforts reshape Ethereum’s role in the global financial system.
For now, investors appear to be focused on a more immediate reality. Ether is back near levels last seen during February’s selloff, leaving Bitmine’s coffers deep underwater and highlighting the gap between Lee’s long-term thesis and the market’s current view of the asset.
