Tom Lee's BitMine Ethereum Gambit Close To Being 'Worst Trade Ever,' Says Ross Gerber As Company Faces Billions In Paper Losses

Renowned investor Ross Gerber slammed BitMine Immersion Technologies Inc.‘s (NYSE:BMNR) strategy on Sunday amid massive unrealized losses on its Ethereum (CRYPTO: ETH) position.

Will BitMine’s Strategy Backfire?

The CEO of Gerber Kawasaki Wealth and Investment Management said the ETH bet by Tom Lee’s company could well turn out to be the “worst trade ever.”

BitMine’s ETH holdings were valued at approximately $8.98 billion, according to data from DropsTab. Having poured $15.65 billion into these investments, the company is staring down unrealized losses of a massive $6.65 billion as of this writing.

Are Treasury Models The Future Or A Flop?

Gerber had previously advised against investing in lesser-known cryptocurrencies, urging investors to focus on established cryptocurrencies like Bitcoin (CRYPTO: BTC) and Ethereum. He referred to these as the "king" and "queen" of the cryptocurrency world.

However, he has been critical of cryptocurrency treasury models pioneered by Michael Saylor’s Strategy Inc. (NASDAQ:MSTR), calling them unviable.

BitMine didn’t immediately return Benzinga’s request for comment on Gerber’s remarks.

Impact Of ETH’s Recent Decline

BitMine pivoted to an ETH treasury company last year, roping in Wall Street veteran and Fundstrat co-founder Lee as the company's chair. The firm has grown to become the largest corporate holder of Ethereum, currently sitting on a cache of 4.243 million ETH.

However, ETH’s decline has impacted its financials. The second-largest cryptocurrency has fallen more than 10% since BitMine launched its ETH treasury pivot in June 2025.

Meanwhile, Lee urged investors not to abandon ETH out of FOMO, suggesting that  "astounding and impressive" gains in metals have sucked investor attention away from themes like AI and cryptocurrency.

Price Action: At the time of writing, ETH was exchanging hands at $2,221.96, down 7.51% in the last 24 hours, according to data from Benzinga Pro.

BitMine shares closed 5.99% hours lower during Friday’s regular trading session. Year-to-date, the stock has dived over 7%.

BMNR maintains a weaker price trend over the short, medium, and long terms with a very high Momentum ranking, according to Benzinga’s Edge Stock Rankings.

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