BitMine Faces $6 Billion Loss Amid Ether Market Slide
By John Nada·Feb 1, 2026·2 min read
BitMine is facing a $6 billion loss from its recent Ethereum investments after a sharp market downturn. The situation highlights the risks of aggressive crypto strategies.
Tom Lee's BitMine is reeling from a staggering $6 billion loss after aggressive bets on Ethereum turned sour. The firm's recent purchase of over 40,000 ETH, which raised its holdings to roughly 4.24 million ETH, came just before a significant market downturn. According to CoinDesk, the value of BitMine's Ethereum stash plummeted to about $9.6 billion, down from nearly $14 billion in October.
As liquidity thinned and liquidations increased, Ether's price dropped toward the $2,300 level, accelerating selling across major tokens. This misalignment in timing has put a spotlight on BitMine's balance-sheet strategy. Corporate crypto treasuries are gaining prominence, but heavy exposure can lead to amplified losses when markets turn.
Losses have been compounded by forced selling in derivatives markets, adding further pressure on spot prices. Tom Lee, the company chairman, recently expressed a more cautious outlook, indicating that while he remains optimistic for the long term, the immediate future could be rocky amid ongoing market deleveraging. In previous comments, he highlighted October's sell-off, which wiped out about $19 billion in market value, as a critical moment that reset investor positioning across the crypto spectrum.
BitMine has indicated that part of its Ether position is staked, estimating annual staking revenue of around $164 million. However, this revenue can fluctuate with network yields and does little to cushion against large price swings during rapid market declines.
The current turmoil emphasizes the risks associated with aggressive accumulation strategies in a volatile market. Investors should take heed of the lessons from BitMine's experience, as it underscores the unpredictability of crypto investments and the potential for significant losses in adverse market conditions.