Tom Lee’s Ethereum Mega Bet Is Down $6B — Genius or Overreach?

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• BitMine holds over 4 million ETH and is facing more than $6B in unrealized losses.
  
• The company continues buying despite heavy market pressure.
  
• 2026 could determine whether this strategy looks visionary or reckless.

BitMine built its identity on a bold idea: Ethereum would enter a powerful supercycle, and the best way to prepare was to accumulate as much ETH as possible, regardless of short-term price swings. For months, Tom Lee’s company did exactly that, buying steadily and publicly embracing volatility.

Now, that strategy is under pressure.

After a sharp market pullback, BitMine’s Ethereum treasury has fallen 22.6% in value to roughly $9.04 billion. The drop marks a major stress test for one of the most aggressive corporate crypto bets ever made—and raises an uncomfortable question: is this simply a painful phase before a rebound, or a sign that BitMine’s risk exposure has gone too far?

A Massive Ethereum Bet Faces Its First Major Test

BitMine currently holds 4,031,739 ETH, placing it among the largest Ethereum holders globally. Even as prices slid, the company continued to add to its position. Just last week, it purchased 40,000 ETH at an average price of $2,220.

Since then, Ethereum has fallen more than 28% over the past month, including a sharp single-day drop of around 7%, according to CoinMarketCap. The result is more than $6 billion in unrealized losses tied to ETH alone.

The scale of those losses matters. BitMine is not just expressing confidence in Ethereum’s future—it has structured its balance sheet around that belief. That makes every major price swing far more consequential than it would be for a diversified corporate treasury.

Crypto Market Weakness Hits Multiple Holdings

Ethereum is not the only asset dragging on BitMine’s portfolio.

The company also holds 11,902 Bitcoin and nearly 89.5 million Solana tokens. As selling spread across the broader crypto market, these positions lost value as well.

Derivatives-driven liquidations added fuel to the decline. When ETH slipped below key technical levels, automated selling cascaded through exchanges, accelerating the downturn. Large holders like BitMine had little room to maneuver as liquidity thinned and volatility spiked.

The pressure spilled into equities too. BitMine’s stock ($BMNR) fell nearly 6%, closing at $25.10, reflecting growing investor anxiety about the company’s exposure.

Long-Term Conviction vs. Short-Term Survival

Tom Lee has not been caught off guard. He previously warned that early 2026 could be turbulent, citing trade tensions, Federal Reserve uncertainty, and the coming leadership transition from Jerome Powell to likely successor Kevin Warsh.

Lee has framed 2026 as a year where fear, drawdowns, and recovery could all happen in rapid succession—and reiterated his intention to “buy the dip.”

That stance may reassure long-term believers. But if crypto prices and BitMine’s stock continue to slide, shareholders may begin pushing for risk reduction rather than accumulation.

Also Read: 2026 May Test Ethereum’s Supply as BitMine Stakes Record Amounts of ETH

BitMine’s $9 billion crypto treasury now sits at a crossroads. If Ethereum rebounds, the company could be hailed as visionary. If the downturn deepens, the strategy may be remembered as a cautionary tale about concentration risk.

For now, BitMine remains all-in on Tom Lee’s thesis. Whether that conviction becomes its greatest strength—or its biggest mistake—will likely be decided in the months ahead.

Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.