Heavy betting on Ethereum hits a wall! Bitmine's accounting losses exceed $6.6 billion

Founded by “Wall Street Oracle” Tom Lee, the publicly listed company Bitmine Immersion has actively accumulated Ethereum as part of its asset allocation over the past year, but recently suffered heavy losses amid a sharp decline in the cryptocurrency market. As the price of coins dropped again, Bitmine’s large Ethereum holdings have shown an unrealized loss of over $6.6 billion.

According to the latest data from tracking platform Dropstab, Bitmine increased its purchase of over 40,000 ETH last week, bringing its total holdings to approximately 4.24 million ETH, accounting for about 3.5% of the current circulating supply of ETH.

However, as the overall cryptocurrency market weakens, ETH prices today (2nd) even briefly fell below $2,200, causing the value of Bitmine’s crypto holdings to drop from nearly $140 billion at October’s high to around $90 billion now, significantly reducing its book value.

Bitmine’s aggressive financial strategy has once again become a market focus. While including cryptocurrencies on the balance sheet has become a trend in this cycle, overly concentrated exposure can amplify volatility risks when the market reverses or liquidity dries up.

Market analysis indicates that this sell-off is not solely due to weakening fundamentals but is driven by a “chain liquidation” in the derivatives market. As ETH prices continue to decline, a large number of contract positions are forcibly liquidated due to insufficient margin, further intensifying selling pressure and creating a vicious cycle of “decline — liquidation — further decline.”