Tom Lee Responds To $6.6B ETH Loss: 'It's Not A Bug, It's A Feature'

BitMine (NYSE:BMNR) chairman Tom Lee defended the company’s $6.6 billion unrealized loss on Ethereum (CRYPTO: ETH) holdings, calling the losses “a feature, not a bug” after critics accused him of being “exit liquidity” for early ETH whales.

Lee’s Defense

X user Flood accused Lee of being “the final exit liquidity for OG ETH whales,” arguing that BitMine’s $6.6 billion unrealized loss represents future selling pressure that will cap Ethereum prices.

Lee pushed back on the criticism.

He argued that critics miss the fundamental point of running an Ethereum treasury—BitMine is designed to track ETH’s price and outperform over complete market cycles, not avoid losses during downturns.

His key defense: “It’s not a bug, it’s a feature,” Lee wrote, comparing BitMine’s unrealized losses to any index ETF that declines during market selloffs. 

The company accepts mark-to-market volatility as inherent to providing leveraged Ethereum exposure. 

Lee doubled down on his conviction, declaring “Ethereum is the future of finance.”

Still Buying Despite Losses

Despite the $6.6 billion paper loss, BitMine bought an additional 41,788 ETH on Monday, showing Lee is doubling down on his accumulation strategy.

Adding conviction, Cathie Wood’s Ark Invest purchased about $6 million worth of additional BMNR shares, signaling belief in the stock’s rebound potential. 

Ethereum has fallen more than 25% since February started, amplifying BitMine’s mark-to-market losses.

BMNR Stock Breakdown

BMNR trades well below all key EMAs: 20 EMA at $28.09, 50 EMA at $31.58, 100 EMA at $34.55, and 200 EMA at $32.59.

Moreover, BMNR is breaking below $23.42 lower Bollinger Band support and approaching $21.67 psychological support. 

If this area fails, next significant support doesn’t appear until $16, followed by $12.13.

All EMAs sit in death cross formation, confirming the established downtrend. 

The stock is down nearly 80% from its highs, creating a dense resistance zone between $28-$35 that bulls must overcome.

Any bounce faces resistance at $23.42, then $28.09, followed by $29.

The Treasury Model Under Fire

Lee’s “it’s a feature” defense mirrors Strategy (NASDAQ:MSTR) executive chairman Michael Saylor’s approach to Bitcoin treasury losses. 

Both argue unrealized losses during downturns are inherent to tracking volatile assets.

The criticism hits harder for BitMine.

Unlike Strategy which accumulated Bitcoin at an average price of $76,052, BitMine’s Ethereum holdings carry massive unrealized losses as ETH crashed from over $3,000 to current levels around $2,300.

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