The cryptocurrency firm BitMine, led by Tom Lee, faces approximately $7.3 billion in unrealized losses on its Ethereum holdings. Despite the 57% price decline from the August 2025 peak, BitMine continues its accumulation strategy and now holds 5.28 million ETH. Technical analysis warns of a potential 25% further drop to around $1,600, which would push BitMine’s paper losses beyond $10 billion, amid deteriorating market sentiment and ETF outflows.
BitMine Immersion Technologies is experiencing substantial paper losses on its Ethereum treasury as Ether’s price declines. The firm’s unrealized losses currently stand at approximately $7.3 billion due to the cryptocurrency’s 57% drawdown from its October 2025 high near $4,955.
BitMine began building its Ethereum treasury in July 2025 after closing a $250 million private placement. By mid-July, the company disclosed holdings of 163,142 ETH, valued at roughly $500 million at that time.
The company has continued acquiring ETH throughout the downturn. As of last week, BitMine held 5.28 million ETH, representing about 4.37% of Ethereum’s total supply. This makes it the world’s largest publicly traded Ether treasury company.
Tom Lee has not retreated from the strategy despite mounting losses. In February, he argued that ETH’s steep drawdown may offer another buying opportunity. He cited Ethereum’s history of V-shaped recoveries after declines exceeding 50%.
The company expects to reach its goal of owning 5% of Ethereum’s supply by December. This signals that Lee’s strategy remains focused on long-term accumulation.
BitMine could see its Ethereum paper losses swell to over $10 billion if a bearish technical setup plays out. A breakdown from a current chart pattern could trigger a measured move toward the $1,600 area, down about 25% from current prices.
The target is derived by subtracting the pattern’s maximum height from the breakdown point. Conversely, a rebound from support may increase odds of a 19-20% rise toward $2,530.
Ether’s bearish technical setup overlaps with several other market headwinds. These include recent Ethereum Foundation departures, persistent ETH ETF outflows, and weakening social media sentiment.
ETH sentiment deteriorated sharply in May, according to on-chain data platform Santiment. The bullish-to-bearish comment ratio fell from above 2:1 in late April to nearly 1:1.
Santiment stated that this kind of deterioration happens when traders lose confidence. “Crypto traders tend to become highly emotional during periods of underperformance,” the report added.
