Bitmine Immersion Technologies (BMNR), the largest corporate holder of ether (ETH), faces losses of nearly $9 billion as the token’s fall below $1,800 drags down the value of its massive treasury.
Shares of the company chaired by Tom Lee fell another 5.9% on Wednesday, falling below $17 and extending their decline to 28% since the beginning of May. The stock has now fallen below its February lows to its weakest level since the company announced its pivot to an Ethereum treasury strategy in 2025.
The sell-off comes as ETH retests its February lows. The second-largest cryptocurrency has lost more than 20% since early May, when Lee, co-founder of Fundstrat and president of BitMine, argued that the market’s “mini crypto winter” was likely over and a new “crypto spring” had begun.
Under Lee’s leadership, Bitmine has accumulated more than 5.4 million ETH, or about 4.5% of Ethereum’s circulating supply, in about a year. That position is worth about $10 billion at current prices.
However, those holdings are now deeply underwater and carry unrealized losses estimated at $8.9 billion, according to data compiled by DropsTab.
Digital asset treasuries under pressure
Bitmine’s drawdown highlights renewed pressure across the digital asset treasury sector, where companies are looking to replicate the playbook pioneered by Michael Saylor’s MicroStrategy (MSTR): raise capital through public markets and use the proceeds to accumulate cryptocurrencies.
That model has become increasingly difficult to sustain as cryptocurrency prices weakened and many Treasury stocks fell below the value of their underlying assets.
The strategy itself recently revealed its first bitcoin sale since 2022, sparking debate over how the company could fund future obligations tied to its preferred stock offerings.
Read more: Saylor’s strategy sold bitcoin for the first time since 2022. These companies are still buying
Bitmine’s situation differs in some key aspects. The company financed its ether purchases primarily by issuing equity rather than debt, leaving it without the leverage and interest payment concerns faced by some treasury peers.
The company also generates revenue by staking its ETH and operating its MAVAN staking service. Bitmine said it has staked more than 4.7 million ETH (about 87% of its holdings) and recently estimated annualized revenue from staking at approximately $276 million.
Lee asks for ETH for $250,000
Recent price developments have not dimmed Lee’s long-term prospects.
Speaking at the Proof of Talk conference in Paris earlier this week, he said ETH could reach $250,000 as tokenization, AI-powered transactions and corporate staking reshape Ethereum’s role in the global financial system.
For now, investors seem focused on a more immediate reality. Ether has returned close to levels last seen during the February sell-off, leaving Bitmine’s treasury deeply underwater and highlighting the gap between Lee’s long-term thesis and the market’s current view on the asset.
