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BitMine Boosts Ethereum Exposure With $98M Investment Amid Massive Unrealized Loss

TL;DR:

• Bitmine acquired an additional 51,162 ETH for $98 million and now holds 4.42 million tokens, equivalent to 3.66% of the total supply.
• The company reports over $8 billion in unrealized losses but maintains $691 million in cash reserves and total assets of $9.6 billion.
• Chairman Tom Lee reaffirmed the long-term accumulation strategy, citing tokenization, AI and the creator economy as fundamental drivers of Ethereum.

Bitmine Immersion Technologies expanded its Ethereum position with the purchase of 51,162 ETH valued at $98 million, raising its total holdings to 4.42 million tokens. Following this transaction, the company holds 3.66% of ETH’s circulating supply, surpassing 73% of its stated goal of reaching 5% in just seven months since the strategy began.

The purchase was completed despite prevailing market pessimism. The Crypto Fear & Greed Index recently recorded a value of 5, its lowest level in the current cycle. Even so, Bitmine executes acquisitions on a recurring basis, interpreting current prices — hovering between $1,900 and $2,100 per ETH — as a cyclical floor and a precursor to a broad recovery.

The Cost of Betting Everything on a Single Asset

The company’s consolidated balance sheet reflects a highly concentrated exposure: 3,040,483 ETH in staking valued at $6 billion, 193 BTC, $691 million in cash and a $200 million stake in Beast Industries, Jimmy Donaldson’s company. Total crypto assets, cash and strategic positions amount to $9.6 billion. However, accumulated unrealized losses exceed $8 billion.

The risks of such concentration levels are evident. A potential forced liquidation of a significant portion of its ETH to cover operational or debt obligations could have a material impact on the price of ETH, given that Bitmine controls an important fraction of the total supply.

Bitmine Has No Intention of Backing Down

Thomas Lee, Chairman of Bitmine, reaffirmed the strength behind the strategy. “ETH’s price does not reflect its high utility or its role as the future of finance,” he stated in the official press release. Lee identifies three fundamental growth vectors for Ethereum: tokenization driven by Wall Street, the use of smart blockchains by artificial intelligence and adoption by the creator economy.

Bitmine (BMNR) also positions itself as one of the most liquid stocks among corporate crypto treasuries. According to Fundstrat data, the average daily volume over the past five days reached $700 million, placing its stock at position 165 among the 5,704 titles listed in the United States.