BitMine Bleeds $6 Billion: Tom Lee’s Massive Ethereum Supercycle Bet Faces Brutal Liquidation Scare
As of February 1, 2026, BitMine Immersion Technologies—a public cryptocurrency treasury company chaired by Fundstrat’s Tom Lee—is grappling with an estimated $6 billion unrealized loss on its Ethereum (ETH) holdings.
The massive paper loss follows a sharp market downturn where Ethereum’s price slid toward $2,300, significantly below BitMine's estimated average cost basis of approximately $3,600–$3,900.
Key Financial Details
Total Holdings: BitMine holds approximately 4.24 million ETH, representing roughly 3.5% of Ethereum's total circulating supply.
Current Valuation: The firm’s ETH stash is currently valued at roughly $9.6 billion, down from a peak of approximately $13.9 billion in October.
Staking Exposure: Roughly 2 million ETH of the total holdings are currently staked, generating an estimated 2.8% annual yield.
Recent Activity: Despite the mounting losses, BitMine reportedly acquired an additional 40,302 ETH last week, signaling a continued commitment to its "Ethereum supercycle" thesis.
Market Implications
The sheer size of BitMine's position has raised concerns about a "liquidation event". Analysts warn that forced selling of over 4 million ETH could destabilize the market, potentially pushing prices down an additional 20–40% due to liquidity slippage. However, because a significant portion of the assets are staked, Ethereum's exit queue would likely prevent an instantaneous "dump," potentially delaying a full liquidation for weeks.
Despite the "painful" start to 2026, Tom Lee remains publicly bullish, recently forecasting that Ethereum could still reach $12,000 later this year as part of a broader infrastructure transformation.
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