Tom Lee's BitMine Down $6B On Ethereum, But Here's Why He Keeps Buying

BitMine Immersion Technologies (NYSE:BMNR) is sitting on over $6 billion in paper losses after Ethereum (CRYPTO: ETH) crashed from $3,000 to $2,300, yet chairman Tom Lee added 41,788 ETH last week at an average price of $2,317.

The Underwater Position

BitMine now holds 4.285 million ETH—representing 3.55% of total Ethereum supply—worth approximately $9.6 billion at current prices. 

The position peaked at nearly $14 billion in October before the recent selloff.

Total holdings include $10.7 billion in crypto and cash: 4.285 million ETH, 193 Bitcoin (CRYPTO: BTC), $586 million in cash, a $200 million stake in Beast Industries, and a $20 million stake in Eightco Holdings (NASDAQ:ORBS).

Lee’s Conviction Despite Losses

Tom Lee defended the accumulation strategy on CNBC, pointing to strengthening Ethereum fundamentals despite price weakness.

Network activity hit all-time highs. Ethereum daily transactions reached 2.5 million and active addresses soared to 1 million daily in 2026, according to TheBlock data. 

Lee contrasted this with prior crypto winters in 2018-2019 and 2021-2022 when network activity declined alongside prices.

Lee blamed non-fundamental factors for ETH weakness.

He cited two main drivers: leverage hasn’t returned to crypto after October’s $19 billion market wipeout, and the surge in precious metals prices acted as a “vortex” sucking risk appetite away from crypto.

On gold’s correction, Lee noted it’s following 1979-1980 patterns closely. 

Gold fell 9% on January 30—its fourth-largest ever daily decline. Each of the prior three larger declines marked near-term tops, Lee said.

The Staking Revenue Cushion

BitMine has staked 2.897 million ETH—up 888,192 in the past week—generating annualized staking revenue of $188 million, up 18% from the prior week.

At full scale, when BitMine’s ETH is fully staked through its MAVAN validator network launching Q1 2026, staking rewards hit $374 million annually using the 2.81% Composite Ethereum Staking Rate, or over $1 million per day.

However, this income does little to offset large price swings during fast drawdowns. 

The $188 million annual run rate provides minimal protection against the $6 billion unrealized loss.

BMNR Stock Technical Breakdown

BitMine is down 6%, trapped below a descending trendline that’s capped rallies since the peak around $110.

The stock is near critical support at $29.60, with next major support at $21.67. 

A breakdown below $29.60 accelerates selling pressure toward lower levels.

The Supertrend indicator flashes red at $30.05, confirming bearish momentum. 

Additionally, RSI sits at 34.26—approaching oversold territory but not at extreme levels yet.

The stock needs to reclaim $35-$40 and break above the descending trendline to signal any meaningful reversal.

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