BitMine Keeps Buying Ethereum Despite a $7.7 Billion Paper Loss

BitMine Immersion Technologies added another 50,928 ETH to its balance sheet last week, paying roughly $103 million at a time when Ethereum had been sliding. The purchase was not a one-off bet either. The firm now holds more than 4.47 million ETH, which works out to about 3.71% of the entire circulating supply, currently valued at around $9 billion with ETH trading near $2,037.

That valuation comes with a heavy caveat. BitMine’s unrealized losses are sitting around $7.7 billion, a figure that reflects just how far Ethereum has fallen since the firm started accumulating aggressively. ETH is down roughly 22% over the past month and off 59% from its August peak. The company’s shares have followed, dropping 51% over the past six months. Monday brought some relief, with BMNR up around 8.4% as crypto markets caught a bid broadly.

Tom Lee, BitMine’s chairman, was not backing away from the position. He said the firm sees the pullback as a buying opportunity and that the price of ETH does not reflect what the network is actually being used for. In his view, the gap between price and utility is the whole point of continuing to buy.

Beyond buying and holding, BitMine has been staking its ETH holdings to generate yield. The firm says it is now staking more than 3 million ETH, which at current rates translates to roughly $172 million in estimated annual staking revenue. Once it launches its own validator network, called MAVAN, it expects that figure to climb to around $253 million annually.

For institutional observers, the story here is less about whether the trade is working right now and more about the emerging category of publicly listed companies making Ethereum, not just bitcoin, their primary treasury asset.

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Sophia Cruz

Financial Writer - Asian & European Desks

Sophia is an experienced writer, reporter and newsdesk member, mostly on the financial sectors. For the past 5 years Sophia has covered a wide variety of topics such as the financial markets, economics, technology, fin-tech and trading. Sophia has been a part of the FX Leaders team since 2017 and works on producing valuable content and information for traders of all levels of experience.

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