 
 
BitMine Immersion chairman Tom Lee responded to criticism that the huge unrealized losses from its aggressive Ether guess will weigh on ETH costs, saying the drawdown is an anticipated a part of an Ethereum treasury technique throughout crypto market selloffs.
It’s “A Characteristic, Not A Bug”
Tom Lee’s publicly traded firm added 41,788 ETH final week, lifting its complete holdings to roughly 4.28 million ETH — greater than 3.5% of the circulating provide of Ethereum. Since then, costs have been severely battered, pulling the worth of BitMine’s stash to about $9.6 billion — down from a peak of round $13.9 billion in October.
Notably, BitMine is at the moment sitting on over $6 billion in paper losses on its ETH holdings as the value of the crypto asset craters. The losses have sparked hypothesis that the corporate’s Ether stash would finally be bought, making a ceiling on costs. The truth is, one X consumer referred to as Tom Lee an “exit liquidity” for early Ether holders.
“These tweets miss the purpose of an Ethereum treasury,” Lee postulated in response, noting that BitMine is designed to trace the value of Ether and outperform over the whole market cycle.
Ether slumped to $2,117 lows yesterday as promoting accelerated throughout crypto majors. Regardless of the depressed costs, the chairman indicated that the rising deficit on its ETH haul is “not a bug, however a characteristic,” evaluating the state of affairs to index exchange-traded funds (ETFs) that register losses throughout wider market downturns.
 
A Painful Reset For Crypto Markets
Regardless of being extraordinarily bullish final yr, Tom Lee has now adopted a extra cautious near-term stance. In a latest interview, he acknowledged that whereas longer-term fundamentals stay intact, the crypto market remains to be reeling from the consequences of deleveraging. The pundit cited the devastating Oct. 10 market crash, which annihilated almost $20 billion in worth, as a decisive second that reset threat urge for food for digital property.
Lee warned that early 2026 could possibly be “painful” earlier than circumstances stabilize later within the yr.
The BitMine chair has oftentimes touted Ether as foundational to the way forward for finance, asserting that short-term weak spot doesn’t undermine the long-term thesis behind accumulating the second-largest cryptocurrency. “Backside line: Ethereum is the way forward for finance,” he summarized.
