Bitmine Immersion Technologies Faces $7 Billion Unrealized Loss on Ethereum

BitMine Immersion Technologies, a publicly traded Ethereum treasury firm, has seen its unrealized losses on its Ethereum holdings grow to $7.7 billion as of February 2026. The company now holds 4.285 million ETH, representing over 3.5% of the circulating supply. These losses come as Ethereum prices have declined sharply since their August 2025 peak of $4,946 to current levels near $2,050.

The firm's stock has followed a similar downward trend, hitting a seven-month low as of early February. Shares of BMNR have fallen over 45% in the past six months. Despite this, the company has continued its accumulation strategy, recently adding 41,788 ETH valued at around $82 million to its holdings.

BitMine chairman Tom Lee has defended the firm's strategy as part of a long-term investment thesis. In response to criticism about the large paper losses, Lee stated on social media that these are expected during market downturns and are "a feature, not a bug" of the Ethereum treasury model.

Why Did This Happen?

The market downturn has been fueled by several factors including the fallout from a record $19 billion in crypto liquidations in October 2025. Precious metals like gold and silver have also drawn investor attention, diverting capital from riskier assets like cryptocurrency. Gold reached a new all-time high above $5,600 an ounce in early February before retracting to $4,680.

BitMine's strategy involves accumulating large amounts of Ethereum with the goal of holding 5% of the circulating supply. The firm's average cost basis for its ETH holdings is around $4,001 per coin. With Ethereum now trading significantly below this level, the company's holdings have lost substantial value on paper.

How Did Markets React?

The crypto market as a whole has been under pressure. The total market capitalization of cryptocurrencies has dipped to around $2.65 trillion as of February 2026. Bitcoin, which has also faced significant price declines, has pulled several corporate treasury holders into unrealized losses.

BitMine has continued to add to its holdings despite the drawdown. In late January, the company acquired another 41,788 ETH at current market prices. This strategy has drawn both praise and criticism from investors and market analysts.

What Are Analysts Watching Next?

Analysts are closely watching how BitMine and other corporate treasury firms manage their positions during this downturn. The firm's chairman has emphasized that the goal is to track the price of Ethereum over the full market cycle.

Some experts argue that large corporate ETH holdings could become sources of future selling pressure if market conditions continue to deteriorate. However, proponents of the model argue that these firms are acting as long-term exposure vehicles rather than traditional trading positions.

The market is also watching for potential changes in BitMine's strategy. The company has not set a hard ceiling on its Ethereum purchases, but it has outlined a clear objective to acquire 5% of the circulating supply. With current holdings at 3.55% of the supply, the company is still in its accumulation phase.

Corporate treasuries like BitMine's represent a new asset class in the cryptocurrency space. While they offer potential for significant gains in bull markets, they also expose companies to sharp drawdowns during corrections. The current market environment is testing the resilience of these strategies as prices remain volatile.