Bitmine, the crypto-focused firm chaired by Fundstrat co-founder Tom Lee, is sitting on more than $6.9 billion in unrealized losses on its Ethereum (ETH) holdings. The situation highlights the severe impact of the recent crypto market correction on large, concentrated institutional bets. Bitmine’s ETH Bet Comes Under Pressure According to portfolio data from Dropstab, Bitmine holds about $9.2 billion worth of ETH, down more than 41% from its total investment of nearly $15.7 billion. The losses remain unrealized, but the scale has attracted attention, with Ethereum trading near seven-month lows following a market-wide sell-off that erased around $500 billion from total crypto market value in recent days. The scrutiny has been amplified by commentary on X. For example, on January 30, investor Karol Kozicki criticized what he called the “prediction industrial complex,” pointing to Lee’s earlier calls for Bitcoin at $180,000 and ETH between $7,000 and $9,000 by the end of January. With BTC now hovering around $75,000 and Ethereum near $2,200, Kozicki described the forecasts as detached from market reality. Another post from market watcher Shah claimed Lee would need prices near $7,000 to exit close to breakeven, noting that any large-scale sale could itself move the market. While the language used drew criticism, the post echoed a broader concern about liquidity and exit risk for large holders during stressed conditions. Liquidations, Whale Moves, and What Comes Next for ETH Bitmine’s losses coincided with a brutal period for ETH, which fell from above $3,000 earlier in the week to as low as $2,166, with CryptoQuant data showing more than $485 million in ETH long liquidations on January 31. Currently, the world’s second-largest cryptocurrency by market cap is down nearly 23% in the last seven days and almost 28% over the past month. Trading volume has spiked 7.30% to more than $55 billion in 24 hours per CoinGecko, a sign of heightened activity as leveraged positions unwind. On-chain data shows mixed behavior among large holders, with Lookonchain reporting that some whales are moving ETH to exchanges, including Trend Research, which deposited more than 33,000 ETH to Binance to repay Aave loans. At the same time, other large players have been buying through OTC desks, picking up more than 30,000 ETH in a matter of hours, suggesting disagreement among sophisticated investors about near-term direction. Lee has previously argued that a historic deleveraging event in October 2025 damaged crypto market structure and increased volatility, even as he maintained a long-term view of Bitcoin as “digital gold.” But as it stands, Ethereum’s price action suggests that conviction alone offers limited protection during broad risk-off moves, especially when leverage and liquidity constraints collide. The post Bitmine’s Ethereum Treasury Faces $6.9B Paper Losses in Market Slump appeared first on CryptoPotato .
