Introduction
While most crypto investors were panic-selling last week, Tom Lee’s Bitmine Immersion Technologies did the opposite, snapping up 40,613 ether tokens as prices tanked. The firm now controls a staggering 4.3 million ETH worth roughly $8.7 billion at today’s price of just over $2,000. The kicker however: Bitmine is sitting on an estimated $7.8 billion unrealised loss. So what’s the strategy behind doubling down during a crash? Let’s break down why the world’s largest ETH holder keeps buying the dip.
Bitmine’s Latest Ethereum Purchase: Buying the Blood in the Streets
Last week wasn’t kind to crypto holders. Ethereum plunged from above $2,300 to as low as $1,700 before stabilising just north of $2,000. While retail investors scrambled for the exits, Bitmine Immersion Technologies (BMNR) added another 40,613 ETH tokens to its already massive holdings.
The company didn’t disclose the exact purchase price, but the timing suggests they averaged somewhere between $1,700 and $2,300 per token. That’s classic contrarian investing, buying when fear is at its peak.
Chairman Tom Lee remains bullish despite the turbulence. “Bitmine has been steadily buying Ethereum, as we view this pullback as attractive, given the strengthening fundamentals,” he said in a press release. “In our view, the price of ETH is not reflective of the high utility of ETH and its role as the future of finance.”
The Numbers Behind Bitmine’s Ethereum Holdings
Let’s talk scale. Bitmine now controls:
- 4.3 million ETH tokens worth approximately $8.7 billion
- $10 billion total portfolio including crypto, equities, and cash
- 2.9 million staked ETH (roughly two-thirds of holdings) generating $202 million in annualised yield
That staking yield alone is nothing to sneeze at, it’s essentially passive income whilst they wait for prices to recover.
The $7.8 Billion Question: Why Keep Buying?
According to data from Dropstab, Bitmine purchased its ETH at an average price of $3,826 per token. With Ethereum trading around $2,000, that’s an unrealised loss of roughly $7.8 billion.
So why keep buying? Tom Lee and his team are betting on Ethereum’s long-term fundamentals rather than short-term price action. They’re wagering that ETH’s utility—smart contracts, DeFi applications, NFTs, and its transition to proof-of-stake—will eventually push prices well above their average cost basis.
It’s a high-conviction play that requires serious stomach for volatility.
Market Reaction and BMNR Share Performance
The market isn’t exactly rewarding Bitmine’s strategy… yet. BMNR shares were flat in early Monday trading but remain down 34% year-to-date. That’s a reflection of both broader crypto weakness and investor scepticism about the company’s concentrated bet on Ethereum.
For context, this level of decline mirrors the pain many crypto-focused stocks have experienced as digital asset prices corrected from previous highs.
What This Means for Ethereum Investors
Bitmine’s aggressive accumulation sends a mixed signal to the market. On one hand, it demonstrates institutional confidence in Ethereum’s long-term prospects. On the other, it raises questions about timing and risk management.
For retail investors, there’s a lesson here: dollar-cost averaging during market crashes can work—if you’ve got the capital, conviction, and patience to weather extended downturns. Just remember that unrealised losses only become real when you sell.
Conclusion
Tom Lee’s Bitmine Immersion is making a bold bet on Ethereum’s future, adding 40,613 ETH during last week’s crash despite sitting on a $7.8 billion unrealised loss. Whether this strategy pays off depends on whether ETH can reclaim—and surpass—the $3,826 average purchase price. For now, it’s a masterclass in contrarian investing and conviction. Want to track institutional crypto moves? Keep an eye on companies like Bitmine for clues about where big money is placing its bets.
FAQ
Q1: How much Ethereum does Bitmine Immersion own?
A: Bitmine Immersion Technologies currently holds 4.3 million ETH tokens worth approximately $8.7 billion at current prices. This makes the company the world’s largest institutional holder of Ethereum.
Q2: What price did Bitmine buy Ethereum at?
A: According to Dropstab data, Bitmine purchased its Ethereum holdings at an average price of $3,826 per token. With ETH trading around $2,000, the company is sitting on substantial unrealised losses.
Q3: How much does Bitmine earn from staking Ethereum?
A: Bitmine has approximately 2.9 million ETH tokens staked, generating an annualised yield of $202 million. This represents roughly two-thirds of the company’s total Ethereum holdings.
Q4: Why is Bitmine buying Ethereum during a crash?
A: Chairman Tom Lee believes the current price doesn’t reflect Ethereum’s fundamental utility and role in decentralised finance. The company views market pullbacks as attractive buying opportunities based on strengthening long-term fundamentals.
Q5: How has Bitmine’s stock performed this year?
A: BMNR shares are down 34% year-to-date as of early Monday trading. The decline reflects broader weakness in crypto-focused equities and investor concern about the company’s concentrated Ethereum position.
DISCLAIMER
Effective Date: 15th July 2025
The information provided on this website is for informational and educational purposes only and reflects the personal opinions of the author(s). It is not intended as financial, investment, tax, or legal advice.
We are not certified financial advisers. None of the content on this website constitutes a recommendation to buy, sell, or hold any financial product, asset, or service. You should not rely on any information provided here to make financial decisions.
We strongly recommend that you:
- Conduct your own research and due diligence
- Consult with a qualified financial adviser or professional before making any investment or financial decisions
While we strive to ensure that all information is accurate and up to date, we make no guarantees about the completeness, reliability, or suitability of any content on this site.
By using this website, you acknowledge and agree that we are not responsible for any financial loss, damage, or decisions made based on the content presented.
