Bitmine Immersion Technologies, chaired by Tom Lee, added 40,613 ether worth approximately $82 million, at an average price of $2,020 per ETH. The acquisition came as ether fell from over $2,300 to a low near $1,700 before stabilizing just above $2,000, allowing Bitmine to further consolidate its market position.
In operational terms, the latest purchase added 40,613 ETH to Bitmine’s balance sheet, with an average price of approximately $2,020 per token and an outlay of roughly $82 million. Although not their largest investments, the timing and strategy employed reinforce the signal of active accumulation in a depressed price environment.
Following this transaction, Bitmine increased its total position to around 4.29 million ETH, equivalent to approximately 3.5% of Ethereum’s circulating supply. This level of concentration positions the company as a systemically important player in the market, at least in terms of potential flows and expectations.
However, the aggregated base cost of the position is significantly higher than current prices. Market estimates place the average acquisition price at around $3,825 per ETH, which explains the magnitude of the unrealized losses, estimated at between $6 billion and $8 billion. This gap between cost and market value is the main factor putting pressure on the stock valuation.
Bitmine’s strategic interpretation of its ETH purchase
Since its July peak, Bitmine’s (BMNR) stock has reportedly fallen by approximately 88%, and after the latest accumulation was announced, it showed further declines in pre-market trading. In other words, the market is discounting the risk of a concentrated and prolonged exposure to a highly volatile asset.
From a strategic leadership perspective, the defense was clear. Tom Lee characterized the accumulation as deliberate and long-term, minimizing the paper losses as an expected effect of this approach. In this context, he described the drop as an opportunity and reiterated the intention to continue buying until reaching a target of close to 5% of the total ETH supply.
For traders and risk managers, this episode highlights at least three key aspects to consider. First, such a concentrated position with a high basis cost increases sensitivity to forced selling or share dilution scenarios if the market continues to weaken. Second, the higher correlation between BMNR and ETH may hinder clean hedging, as protecting the stock does not always efficiently neutralize exposure to the underlying cryptocurrency. Finally, the continuation of the strategy could generate episodic flows in spot and derivatives markets, affecting liquidity at specific times.
Going forward, scenarios remain contingent on the price of ether. A sustained recovery would disproportionately benefit Bitmine, given the volume accumulated at lower prices. Conversely, an extension of the downtrend could restrict corporate options and increase hedging requirements for counterparties.
