ChainCatcher News, BitMine Chairman Tom Lee recently responded to market doubts, denying that the company's large Ethereum reserves' unrealized losses would form a "ceiling" for future ETH prices. He stated that experiencing paper losses during a market downturn is an "inherent characteristic, not a design flaw" of Ethereum reserve strategies. Previously, some comments claimed that BitMine's held ETH had incurred about $6.6 billion in unrealized losses, and argued that these ETH would eventually be sold, thus suppressing prices, even describing Lee as the "exit liquidity" for early ETH holders. In response, Lee refuted that such views "misunderstand the operational logic of Ethereum reserve companies," stating that BitMine's goal is to track and outperform ETH performance over a full market cycle, not to engage in short-term trading. Data shows that over the past month, ETH prices have dropped nearly 30%, and BitMine's stock price has also declined by about 30% during the same period. Currently, BitMine holds approximately 4.285 million ETH, accounting for about 3.5% of the circulating supply, making it the largest publicly traded Ethereum reserve company in known scale. Its holdings' market value had approached $14 billion at the end of 2025 to early 2026, then dropped below $10 billion following the market correction. Lee compared the current situation to an index ETF, stating that experiencing paper losses during a systematic decline is normal, not a strategic failure. The debate around ETH reserve companies has once again intensified: critics argue that large reserve companies could become potential sources of selling pressure, while supporters emphasize that they are closer to long-term, index-like exposure tools. From a valuation structure perspective, as the market weakens, the stock prices of most ETH reserve companies have already fallen below their crypto asset net asset value (mNAV), objectively suppressing the motivation for issuing new shares at low prices and limiting dilution risks. Supporters argue that this mechanism is equivalent to a "natural circuit breaker," preserving ammunition for the next cycle.
BitMine's Tom Lee Defends Ethereum Reserve Strategy Amid Market Downturn
ChaincatcherShare
Summary
Ethereum news broke as BitMine's Tom Lee defended the firm's Ethereum reserve strategy amid ongoing market concerns. The company holds 428.5k ETH, or 3.5% of the circulating supply, with reserves valued at over $100 billion. Lee dismissed fears that the holdings could cap Ethereum price today, calling unrealized losses a natural part of bear markets. Critics warn of potential sell-offs due to $6.6 billion in losses, but Lee stressed the focus is on long-term outperformance. BitMine's stock has dropped nearly 30% alongside ETH's recent decline.
Source:Show original
Disclaimer: The information on this page may have been obtained from third parties and does not necessarily reflect the views or opinions of KuCoin. This content is provided for general informational purposes only, without any representation or warranty of any kind, nor shall it be construed as financial or investment advice. KuCoin shall not be liable for any errors or omissions, or for any outcomes resulting from the use of this information.
Investments in digital assets can be risky. Please carefully evaluate the risks of a product and your risk tolerance based on your own financial circumstances. For more information, please refer to our Terms of Use and Risk Disclosure.