BitMine Immersion Technologies, a publicly traded cryptocurrency treasury company affiliated with investor Tom Lee, is suffering significant unrealized losses on its Ether holdings following the latest wave of market liquidations, highlighting the risks facing crypto balance strategies during edged economic downturns.
After acquiring an additional 40,302 Ether (ETH) last week and increasing its total holdings to over 4.24 million ETH, BitMine’s unrealized losses have risen to over $6 billion, according to data from Dropstab, a platform that tracks digital asset prices and portfolio valuations.
Based on current market prices, BitMine’s Ether holdings are valued at about $9.6 billion, down from a peak of about $13.9 billion in October, reflecting the impact of the broader crypto sell-off.
Paper losses mounted as the price of ether fell to $2,300 on Saturday, which The Kobeissi Letter attributes to unstable liquidity conditions.
“In a market where liquidity is volatile at best, sustained levels of extreme leverage are creating ‘air pockets’ in the price” – market commentator he saidadding that “herd” positioning strengthened the sale.
Related: Bitmine’s holdings in Ether indicate $164 million in annual staking revenue
A hard reset for cryptocurrency markets
Despite previous optimism about the end of 2025, Tom Lee warned that conditions have changed and 2026 is likely to start on a “painful” note before a potential rebound later in the year.
In a recent interview, Lee said the cryptocurrency market is still feeling the effects of deleveraging even if long-term fundamentals remain intact. He pointed to the Oct. 10 market crash, which wiped out about $19 billion in value, as a key turning point that reset the risk appetite for digital assets.
A recent assessment by market maker Wintermute echoed this view, arguing that a sustained economic recovery in 2026 will require structural improvements. These include renewed momentum in the Bitcoin (BTC) and Ether markets, broader participation of exchange-traded funds, expanded digital asset treasury powers, and the return of retail inflows.
Wintermute said these factors are needed to restore the broader wealth effect in the market. However, retail participation remains subdued as investors continue to gravitate towards faster-growing topics such as artificial intelligence and quantum computing.
Related: Liquidations knock Bitcoin out of the top 10 assets in the world
