Key Takeaways:
During the price correction, BitMine's ETH assets have been steadily increasing.
BitMine Immersion began building its Ethereum position in mid-2025, shortly thereafter reporting a $250 million private placement aimed at funding this strategy. By mid-July 2025, the company disclosed it held approximately 163,142 ETH, valued at around $500 million at that time.
Despite facing losses, Tom Lee's strategy remains steadfast. In February, he stated that Ethereum's sharp correction could provide new buying opportunities for investors, noting ETH's historical resilience after significant declines. However, the company indicated in May that it would slow down new purchases rather than halt them entirely, remaining committed to holding a significant minority stake in the total network supply to align with its long-term investment philosophy.
Impact of Price Trends on BitMine's Paper Losses
Since the peak in October 2025, ETH has dropped over 57%, which has not only eroded Ethereum's market share but also intensified the pessimism surrounding the asset. The dominant metric for ETH (ETH.D) has declined to about 10%, down from approximately 15% in August 2025, indicating a shift in market focus towards other crypto assets and sectors.
Trading charts are showing warning signals. Ethereum is testing the lower boundary of an ascending wedge, a pattern that typically suggests weakening buying momentum. If this support level is breached, ETH could drop towards the $1,600 range, representing about a 25% downside risk from current levels. Should this scenario occur, BitMine's unrealized losses would further expand, estimated to approach $10.1 billion based on its reported 5.28 million ETH and an average purchase price of approximately $3,513.
Conversely, if prices can decisively rebound to the lower boundary of the wedge, it may push prices closer to the upper boundary of the wedge near $2,530, a level that aligns with the 200-day exponential moving average and historical resistance around $2,500. In this case, BitMine's paper losses would be alleviated, even as its long-term accumulation investment philosophy remains intact.
Broader Challenges Facing Ethereum and Market Sentiment Dilemma
The price tension of ETH is at the intersection of macro market dynamics and specific industry concerns. In addition to technical factors, Ethereum has faced a series of governance and ecosystem challenges that could influence trader behavior. Recent reports regarding personnel changes at the Ethereum Foundation have fueled narratives of shifting development priorities, while ongoing ETF outflows have exerted pressure on price action and liquidity dynamics.
Market researchers note a significant shift in on-chain sentiment. Data from Santiment indicates that during May, the ratio of bullish to bearish sentiment deteriorated, shifting from an initially positive outlook to a roughly neutral or bearish stance. The company describes a common pattern seen during underperformance: fluctuations in trader sentiment.