Tom Lee’s Ethereum-focused treasury firm BitMine has kept buying aggressively into a falling market, purchasing another $84 million worth of ether even while carrying roughly $8 billion in unrealized (“paper”) losses from the recent crypto sell-off.
Blockchain analytics platform Lookonchain shows that the latest purchase lifted BitMine’s stash to 4,325,738 ETH, valued at about $9.14 billion at last week’s prices. Rather than slowing down, the firm has accelerated its accumulation strategy during the downturn — a bet that time, not timing, will reward patient holders.
Earlier on Monday, BitMine disclosed that it had already bought 40,613 ETH in the prior week, bringing it to 72% of its goal to acquire 5% of Ethereum’s total circulating supply. That target makes BitMine one of the largest single ETH holders outside of exchanges and protocol treasuries.
On-chain data from Arkham Intelligence shows the newest buying came in two equal blocks:
- 20,000 ETH purchased from trading firm FalconX
- 20,000 ETH bought from custody provider BitGo
Both trades occurred within a short window, signaling a coordinated execution rather than opportunistic bargain hunting.
Lee has publicly acknowledged the losses, calling them “expected” in volatile markets. He argues that deep drawdowns are part of any long-cycle investment and insists BitMine will ultimately outperform the broader market when the cycle turns.
Staking income cushions the downturn
BitMine is not simply holding idle coins. The firm has chosen to stake 67% of its total ETH, locking up the tokens to help secure the network in exchange for rewards. That strategy currently generates about $202 million per year in staking revenue — a steady cash flow even when prices are weak.
At present, Ethereum trades roughly 57% below its all-time high of $4,900, reached in August 2025. For many investors, that kind of drop would trigger panic selling. BitMine has done the opposite, treating the pullback as a buying window.
Lee argues that price is only one side of the story. He notes that Ethereum’s network usage, transaction volume, and real-world utility have hit new highs during the slump — a sign, in his view, that demand is structural rather than speculative.
To Lee, market pullbacks have historically created the best entry points, even when they feel uncomfortable in real time.
A contrarian bet against the crowd
BitMine’s stance contrasts sharply with other institutions that have rushed for the exits. Research firm Trend Research recently liquidated its entire ETH position, crystallizing about $750 million in losses. The company said it would use the proceeds to repay loans it took out to buy ETH near previous highs — a classic forced unwind.
Lee has also faced criticism for bold price forecasts that have not materialized. In January, he predicted:
- Bitcoin could reach $180,000
- Ethereum could trade between $7,000 and $9,000
Neither call has played out so far, giving skeptics ammunition to question his timing. Still, Lee maintains that long-term fundamentals — not short-term price — justify BitMine’s approach.
What BitMine owns and earns (at a glance)
- ETH holdings: 4,325,738 coins
- Current value: ≈ $9.14 billion
- Latest purchase: $84 million (40,000 ETH total)
- Staked share: 67% of holdings
- Annual staking revenue: ≈ $202 million
- Market drawdown: ETH down 57% from $4,900 peak
For now, BitMine is betting that patience will beat panic. Whether that gamble pays off will depend less on today’s prices and more on how central Ethereum becomes to the future financial system.
