BitMine chairman Tom Lee has addressed concerns over the company’s recent losses in Ethereum (ETH), calling them “a feature, not a bug.”
He explained that short-term drops are expected in BitMine’s Ethereum-focused treasury, which is designed to track ETH prices and perform over market cycles.
Recent reports show that BitMine is sitting on over $6 billion in paper losses after Ethereum’s price drop pushed its 4.24 million ETH holdings down from nearly $14 billion in October to about $9.6 billion.
The firm even added over 40,000 ETH just before the latest dip, raising questions about its exposure.
BitMine, however, considers itself not as a short-term trader but as an Ethereum treasury, focused on long-term accumulation and staking yield. The firm expects and “is prepared” for short-term losses and considers them part of the plan, which is based on its strategy for Ethereum market cycles.
Tom Lee: BitMine’s $6 billion ETH losses are “part of the plan”
The comments come as the treasury faces paper losses exceeding $6 billion, amid a crypto market slump that has pushed Ethereum to multi-month lows.
Lee stressed that these unrealized losses don’t signal a problem but are part of the plan, reflecting the ups and downs of crypto investing and the company’s long-term strategy to ride market cycles rather than avoid temporary dips.
BitMine’s treasury takes hit as ETH Prices tumble
Ethereum has experienced a sharp downturn, falling over 24 percent in the past week, making it the largest weekly decline among the top 10 cryptocurrencies by market capitalization.
On Tuesday, ETH traded as low as $2,109 on the Binance exchange, its lowest level since May 2025.
The sharp decline in price has put pressure on digital asset treasuries, as the biggest holders of the asset have incurred substantial unrealized losses. This decline in price can be attributed to the general decline in the market, as investors respond to the growing volatility and uncertainty in the crypto market.
Critics warn BitMine’s large ETH holdings could cap prices
Some critics worry that BitMine’s huge Ethereum holdings could hold back ETH’s price if the company ever decided to sell.
But Tom Lee, BitMine’s chairman, pushed back on that idea in a post on X (formerly Twitter), saying the recent losses are just part of the market’s natural ups and downs, not a flaw in the treasury itself.
Lee’s determination comes as the larger market has also echoed the same support for Ethereum. On-chain data shows investors are scooping up Ethereum during the recent price dip.
Lookonchain spotted three previously inactive wallets spending about $13.1 million to buy 5,970 ETH at an average of $2,195. In a different deal, an over-the-counter whale bought 33,000 ETH for $76.6 million.
The two transactions show that the whales see the low prices as a chance to buy, which shows that they still believe in the Ethereum network even though the price has dropped.
It is clear that investors are using the drop in price to make their positions stronger.