Ethereum co-founder Vitalik Buterin has reduced his ETH holdings as the coin approaches the $2,000 mark, its weakest level in nine months.
Key Points
- Buterin sold roughly 2,900 ETH over three days, worth about $6.6 million, at an average price of $2,228 per ETH.
- The ETH sales follow a prior commitment of 16,384 ETH earmarked for long-term projects.
- Ethereum is currently trading at $2,057, its lowest since May 8, 2025.
- Institutional investor BitMine holds 4.28 million ETH and faces over $7 billion in unrealized losses due to recent price declines.
- BitMine’s CEO, Tom Lee, defends the long-term strategy, noting short-term losses are expected.
On-Chain Data Shows Gradual ETH Sales
Blockchain analytics firm Lookonchain reported that wallets publicly linked to Buterin sold roughly 2,900 ETH over the past three days, valued at approximately $6.6 million. The average sale price was $2,228 per coin.
Rather than executing a single large transaction, Buterin’s ETH was sold through multiple smaller swaps. Lookonchain noted on X that using decentralized protocols likely helped minimize immediate market disruption.
Sales Linked to Earlier Funding Commitment
The recent sales follow a disclosure Buterin made days earlier. Last week, he announced that 16,384 ETH from his personal holdings had been earmarked for long-term projects.
In a detailed post on X, Buterin explained that the allocation would fund open-source development, secure infrastructure, and public-goods research. At current prices, the reserved ETH is valued at around $34 million.
Given this prior announcement, market participants largely interpret the sales as operational funding aligned with stated goals rather than a sudden change in outlook triggered by declining prices.
As of this report, Ethereum was trading at $2,057, down 8% over the past 24 hours and roughly 30% over the past week. This slide places ETH at its lowest level since May 8, 2025.
BitMine Faces Large Unrealized Losses
The downturn has affected large institutional investors as well. BitMine, a crypto investment firm chaired by Tom Lee, reportedly faces over $7 billion in unrealized losses tied to its Ethereum holdings.
BitMine currently holds 4,285,125 ETH, ranking it among the largest corporate owners of the asset. The firm accumulated its position at an average cost of $2,317 per coin, representing a total investment of roughly $9.92 billion. At its October 2025 peak, the holdings were valued at nearly $14 billion.
Tom Lee Defends Long-Term Strategy
Despite the scale of the losses, Lee has remained firm in defending BitMine’s approach. He has stated that short-term price declines are an expected outcome for an ETH-linked treasury vehicle.
Addressing claims that BitMine acted as exit liquidity for early Ethereum holders, Lee said such criticism misunderstands the company’s strategy. He emphasized that BitMine’s valuation is designed to rise and fall in line with Ethereum’s market price.
Furthermore, comparing index funds during broader market slumps, Lee argued that unrealized losses do not compromise the firm’s long-term vision. According to him, the strategy remains intact despite current market conditions.
These tweets miss the point of an ethereum treasury:
– BitMine is designed to track the price of $ETH
– outperform over the cycle (think up ETH)
– crypto is in a downturn, so naturally ETH is down$BMNR will see “unrealized” losses on our holdings of ETH during these times:
-… https://t.co/VpoNjAnJdC— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) February 3, 2026
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.