BitMine Immersion Technologies made one of the boldest moves Wall Street has ever seen in crypto. Instead of treating Ethereum as a small investment, the company transformed itself into what is basically a corporate ETH treasury. The goal was extreme — accumulate close to 5% of all Ethereum in existence. And surprisingly, they almost pulled it off. Today, BitMine controls about 4.28 million ETH, roughly 3.55% of the total supply.
At the time, the strategy looked genius. Ethereum was booming, institutions were warming up to crypto, and the future of blockchain seemed unstoppable. BitMine went all in, buying ETH at prices hovering between $3,800 and $3,900. They poured in around $15.7 billion, convinced they were securing a once-in-a-generation asset.
Fast forward to 2026, and the picture looks very different. Ethereum has been crushed in the broader crypto downturn, now trading around $2,000 to $2,200. That massive treasury is currently worth roughly $9.2 billion. On paper, BitMine is sitting on a jaw-dropping unrealized loss of between $6.5 and $6.9 billion.
To put that into perspective, this single trade now sits in the same category as some of the most infamous financial disasters in history — JPMorgan’s London Whale, the collapse of Long-Term Capital Management, and Amaranth Advisors blowing up in commodities. Except this time, the battlefield is crypto.
What makes the situation even more dangerous is the sheer size of BitMine’s position. They own more Ethereum than many exchanges see traded in weeks. If something forced them to liquidate — debt pressure, margin calls, or a sudden loss of confidence — the market simply couldn’t handle it smoothly. The selling would overwhelm daily volume, slippage would be brutal, and prices could spiral down 20 to 40 percent in a very short time. It would likely become the largest single liquidation event in crypto history.
Yet despite the massive losses, BitMine’s leadership isn’t retreating. Tom Lee, who is running the strategy, has doubled down on his conviction. During the downturn, the company actually added another 41,788 ETH to its holdings — buying while fear was everywhere.
Lee’s argument is simple but bold. Ethereum usage is at all-time highs. More institutions are building on the network. Staking is generating roughly $374 million per year in income. In his eyes, today’s price pain is temporary, while Ethereum’s role as global financial infrastructure is just beginning.
Whether BitMine ends up being remembered as visionary or reckless is still an open question. If Ethereum eventually rebounds and reaches new highs, this could go down as one of the greatest contrarian bets in modern finance. If it continues to struggle, it may become a case study in what happens when conviction meets leverage in an unforgiving market.
One thing is certain — this is no longer just a crypto story. It’s a real-world stress test of how far institutional money is willing to go into digital assets, and what happens when the volatility hits back.
The Ethereum bet of BitMine is now etched into financial history. The only question left is whether it ends as a comeback story… or a cautionary tale.
