BitMine Immersion Technologies, a publicly traded cryptocurrency treasury firm affiliated with investor Tom Lee, is recording significant unrealized losses on its Ether holdings following the recent wave of market liquidations, underscoring the risks faced by crypto balance sheet strategies during sharp downturns.
After BitMine acquired a further 40,302 Ether (ETH) last week, increasing its total holdings to greater than 4.24 million ETH, its unrealized losses have grown to over $6 billion, in keeping with data from Dropstab, a platform that tracks digital asset prices and portfolio valuations.
Based on current market prices, BitMine's Ether holdings are valued at roughly $9.6 billion, down from a peak of roughly $13.9 billion in October, reflecting the impact of the broader crypto sell-off.
Source: Dropstab
Paper losses mounted as the value of Ether slipped toward $2,300 on Saturday, a move that The Kobeissi Letter attributed to fragile liquidity conditions.
“In a market where liquidity has been volatile at best, sustained extreme leverage is creating “air pockets” in the value,” the market commentator said, adding that “herd-like” positioning had amplified the sell-off.
A difficult restart for the crypto markets
Despite earlier optimism for the top of 2025, Tom Lee has warned that conditions have modified and 2026 is prone to start “painfully” before a possible recovery later within the 12 months.
In a recent interview, Lee said that the crypto market continues to be feeling the impact of deleveraging, regardless that longer-term fundamentals are intact. He pointed to the Oct. 10 market crash, which caused a lack of around $19 billion in value, as a key turning point that reshaped risk appetite in digital assets.
Source: Tom Lee
A recent assessment from market maker Wintermute confirmed this view, arguing that a sustained recovery in 2026 would require structural improvements. These include renewed momentum in Bitcoin (BTC) and Ether, broader participation in exchange-traded funds, expanded treasury mandates for digital assets and a return of retail inflows.
Wintermute said these aspects are needed to revive a broader wealth effect out there. However, retail investor participation stays limited as investors proceed to gravitate towards faster-growing themes akin to artificial intelligence and quantum computing.
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