BitMine Immersion Technologies continued to buy as prices fell, peaking at 40,613 ETH during last week’s selloff. Reports say the purchase totaled around $83–$84 million, which was done when Ethereum was trading around $2,020 per token.
BitMine’s Growing Stake And The Man At The Helm
According to a recent report, this move pushed BitMine’s Ethereum total to about 4.32–4.33 million ETH, a stash worth billions at current rates. Executive chairman Tom Lee positioned the dip as an attractive entry point and expressed confidence in the recovery.
Paper Losses Widen As Rates Slide
Reports note that the company’s huge expenditure on its ETH hoard has left its treasury sitting on an unlikely loss of billions of dollars.
Estimates from recent sources put those paper losses at between $7.5 billion and $8 billion, depending on which price is used to mark the holdings. That gap widened as Ether dropped from highs into the low $2Ks.
BitMine faces an estimated $7.7 billion paper loss on its ETH holdings. Source: DropsTab
Market and Shareholder Response
BitMine’s aggressive buying has not calmed all investors. News outlets followed the decline in the company’s stock (BMNR), which was reported to be down nearly 5% in pre-market trading around the same time the ETH purchase was revealed.
Traders seem to weigh the long-term thesis against the immediate value of the company’s net assets.
Six‑month performance of BitMine (BMNR) stock. Source: Yahoo Finance
Why the Company Adds
Reports say that BitMine sees this as part of a deliberate game by the treasury. Some of the company’s ETH is staked, which generates a yield and can help offset paper loss in the long run.
Tom Lee predicted a strong rebound, requiring a V-shaped recovery in the ether. That kind of perspective explains why purchases come even when the market is weak.
ETHUSD trading at $2,012 on the 24-hour chart: TradingView
What to Watch Next
In the short term, the price moves through the ether and changes in investor sentiment will be clear signals. If ETH takes a strong upward phase, the unrealized losses will decrease rapidly.
If the token continues to trade low, the company’s paper loss metrics will remain the subject of shareholders and analysts.
Reports say that details such as financing, stake returns, and any other acquisitions disclosed will change how investors view the company’s risk profile.
BitMine’s choice to continue buying at low levels is a clear bet on future price recovery. Whether that bet pays off for shareholders depends on the market’s next move, as well as whether patience and revenue can outweigh a big short-term drawdown.
Featured image from Thomas Fuller/SOPA Images/LightRocket via Getty Images, chart from TradingView
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