Bitmine's massive wager on Ethereum is careening toward a $9 billion loss after Ether slipped below $,1800 on Wednesday, revisiting the lows it hit back in February. The company's shares — now trading at their cheapest level since it pivoted to crypto — are dragging down Tom Lee's Ethereum treasury firm, which also saw its stock slide to a record low.
A $9 billion hole
The numbers are brutal. Bitmine loaded up on Ether when prices were well above $3,000, betting the second-largest crypto would keep climbing. Instead, Ether has been sliding for months and Wednesday's drop below $1,800 erased another chunk of the position. The unrealized loss is now approaching $9 billion, according to the company's latest disclosures.
That's a staggering sum for a firm that, before its crypto pivot, was a mining hardware manufacturer. The timing isn't great — the broader market is jittery, and Ether's latest dip pulled it right back to levels not seen since February.
Tom Lee's treasury firm hits a new low
Tom Lee's ETF and treasury management firm, which holds a chunk of Ether on its balance sheet and trades under the ticker LEE, saw its shares plummet to an all-time low Thursday. Since the company pivoted to a crypto-heavy strategy, investors have been skittish, and today's Ether drop sealed the deal. The stock is now down more than 70% from its peak after the pivot.
The firm didn't release a statement on Wednesday, but the market is clearly voting with its feet.
Ether revisits February lows
Ether's slide below $1,800 put it right at levels last seen in mid-February, when the broader market was recovering from a sharp correction. Back then, the crypto managed to bounce. This time, the macro backdrop is different: interest rate cuts are still uncertain, and regulatory clarity remains elusive. Traders are watching to see if $1,800 holds as support — or if a break below opens the door to further losses.
Bitmine's options narrow
With a $9 billion hole in its Ether position and shares at basement levels, Bitmine doesn't have many levers to pull. It could sell some of its stack to raise cash, but that would lock in the loss and likely push prices lower. It could wait for a rebound — but that's a bet on a market that's shown little appetite for risk this spring.
The company's next quarterly filing, due in early August, will show whether it's started to unwind the position or is doubling down. Either way, the clock is ticking.
