BitMine Adds Nearly 70K ETH While Holding Billions in Unrealized Losses

BitMine Immersion Technology has made another huge move in the middle of a sharp market downturn. The company recently purchased almost 70,000 ETH, raising its total Ethereum holdings to an astonishing 3.63 million ETH. This represents roughly 3 percent of the entire supply of Ethereum. Bitmine shared in its press release that it bought its Ethereum (ETH) at an average price of about $3,997. With today’s market prices much lower, the company is currently sitting on an unrealized loss of around $4.5 billion. This means the loss isn’t final because Bitmine hasn’t sold the ETH yet, but the value has dropped significantly.

This situation leaves many people wondering why a company would keep buying when the market is falling, what it means for Ethereum, and whether BitMine’s strategy is visionary or simply risky. Understanding this moment requires looking at BitMine’s goals, current market conditions, and the challenges that come with holding such a large amount of crypto.

This update shows two things, First, Bitmine is clearly committed to its long-term strategy, since it continued buying even at high prices. Second, it shows how much Ethereum has fallen from its recent peak. The ongoing price drop reflects the wider uncertainty in the crypto market, where fear is stronger than confidence and trading activity is weaker than usual.

Understanding BitMine’s Strategy: Building a Long-Term ETH Reserve

BitMine, led by long-time investor Thomas Lee, has transitioned from its original focus on Bitcoin mining to accumulating Ethereum as its primary treasury asset. It is now considered the largest corporate holder of Ethereum. BitMine’s approach is simple, accumulate ETH during both good and bad market conditions, stake part of its holdings to earn yield, and position itself for what it sees as Ethereum’s long-term growth cycle. Public filings show the company holds around $800 million in cash on top of its crypto holdings, giving it a sizeable financial cushion even during volatile times.

The latest purchase of nearly 70,000 ETH while the price was falling shows that BitMine is staying consistent with its long-term strategy. By buying during a downturn, the company lowers its overall cost per coin and strengthens its belief that Ethereum will recover in the future.

Ethereum’s price has dropped sharply from its previous highs, falling by around 40 to 45 percent. BitMine accumulated much of its ETH at higher prices. As a result, the company’s holdings now appear to be worth billions less on paper. This type of loss is called an unrealized loss because the company has not sold its ETH. The loss becomes real only if BitMine actually sells the holdings at the current lower price.

Ethereum’s price chart shows that the market is still struggling to recover after falling below the $3,000 mark. Even though ETH briefly bounced back toward $2,900, the overall trend is still downward. This is because the price is trading below the 50-day, 100-day, and 200-day moving averages, important indicators that traders use to understand long-term direction. When all these averages are stacked above the current price, it usually signals a continuing downtrend.

The chart also shows a pattern of lower highs and lower lows, which means buyers haven’t been strong enough to reverse the decline. On top of that, trading volume jumps mainly during sell-offs, suggesting that sellers, not buyers are driving the market right now. Every time Ethereum tries to rise, it gets pushed back down near the $3,150–$3,250 resistance zone. This tells us that investor confidence is still weak.

The 200-day moving average around $3,500 has become an important long-term level. If Ethereum cannot climb back above this area soon, it may continue moving sideways or even drop further. For the moment, Ethereum is in a fragile state and needs much stronger buying interest for the trend to turn positive again.

BitMine’s massive Ethereum buying strategy shows unusual confidence at a time when most of the market is fearful. Whether this becomes a brilliant long-term move or a costly mistake will depend on Ethereum’s ability to recover and rebuild strength in the months ahead. For now, BitMine’s commitment highlights how some major players continue to think far beyond short-term price swings.

Do you think BitMine’s aggressive ETH accumulation is a smart long-term strategy or an unnecessary risk during a weak market?