The firm Bitmine Immersion Technologies, linked to the renowned investor Tom Lee, is undergoing an accounting crisis by recording unrealized losses exceeding 6 billion dollars in its Bitmine Ethereum reserves. This negative balance deepened after the recent crypto market crash, which dragged Ether’s price toward levels close to $2,300.
Despite the bearish environment, the company increased its exposure last week by acquiring an additional 40,302 units of Ether, bringing its total treasury to over 4.24 million ETH. Thus, the firm’s current position is valued at approximately 9.6 billion dollars, representing a drastic drop from the peak reached of 13.9 billion in October.
Market fragility, characterized by extremely thin liquidity and high leverage, has left firms with large concentrated reserves in digital assets vulnerable to sudden price gaps. Therefore, analysts at The Kobeissi Letter warn that saturated positioning accelerated the decline once selling pressure emerged from institutional quarters during the past weekend.
What perspectives does Tom Lee offer regarding current deleveraging?
Tom Lee, who has historically defended the value of blockchain, has recently warned that short-term conditions have deteriorated significantly due to the global deleveraging process. However, the investor maintains that long-term fundamentals remain intact, considering this phase a painful adjustment but a necessary one following the massive liquidation events late last year.
Furthermore, the absence of retail flows is identified as a key constraint, as many investors have shifted their interest toward sectors such as artificial intelligence. Therefore, for the market to regain its wealth effect, a renewal of momentum in the main assets is required along with greater adoption by corporate treasuries, thus allowing for the return of confidence and operational stability.
Ultimately, the firm’s future will depend on the resilience of its Bitmine Ethereum reserves against the persistent volatility of the network. While the Ethereum Foundation works on post-quantum security enhancements, institutional firms must manage extreme volatility risks that characterize the start of 2026, waiting for a gradual recovery of sector liquidity.
