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BitMine Faces Over $6 Billion in Unrealized Losses, but Tom Lee Claims It’s Part of the Plan
- BitMine’s Ethereum holdings show $6.4 billion in unrealized losses due to a 24% weekly price drop, yet Chairman Tom Lee views this as inherent to their treasury model tracking ETH performance.
- Despite market downturns, BitMine acquired over 141,000 ETH last month, boosting total holdings to 4,285,125 ETH, signaling strong conviction in Ethereum’s future.
- Other investors accumulated ETH during the dip, with wallets buying 5,970 ETH for $13.1 million and an OTC whale purchasing 33,000 ETH worth $76.6 million.
- In contrast, Trend Research deposited 153,588 ETH to exchanges amid $562 million losses, facing potential liquidations around $1,800 per ETH.
- Divergent strategies between accumulation and selling shape the Ethereum market in February 2026, highlighting volatility and long-term bets.
WEEX Crypto News, 2026-02-04 09:52:13
BitMine’s Unrealized Losses on Ethereum Holdings Surpass $6 Billion
BitMine Immersion Technologies reports around $6.4 billion in paper losses from its Ethereum stash, driven by a market slump that cut ETH’s value by over 24% in a week, marking the biggest drop among top-10 cryptos. This pressure hits digital asset treasuries hard, but Tom Lee defends it as built-in to their ETH-tracking strategy.
Ethereum’s price action turned brutal last week. It plunged more than 24%. That beat out declines in Bitcoin and other big names.
No other top-10 coin suffered as much. We saw this on BeInCrypto Markets data.
On Tuesday, ETH hit $2,109 on Binance. That’s the lowest since May 2025.
At writing, it traded at $2,270. Down 3.06% in 24 hours.
This sell-off cranks up stress on holders with massive positions. Digital asset treasuries feel the burn.
Major players stare at big unrealized losses. Broader market weakness fuels it.
CryptoQuant data pins BitMine’s paper losses at $6.4 billion. From their Ethereum holdings.
Critics fret over these huge stacks. If BitMine dumps, it could cap ETH price upside.
But Tom Lee fired back on X. He驳斥Ethereum-focused treasury critics.
Lee says losses mirror market conditions. Not flaws in their setup.
BitMine tracks Ethereum’s price. Aims to beat it over a full cycle.
In downturns, ETH drops drag their books. Natural outcome.
Lee’s quote: “BMNR will see ‘unrealized’ losses on our holdings of ETH during these times: it’s a feature, it’s not a bug.”
He compares it to index ETFs. Do we bash them for losses?
Bottom line from Lee: “ethereum is the future of finance.”
This echoes his earlier take. Bitcoin and Ethereum turbulence might pass soon.
Shows his Ethereum faith. Backed by BitMine’s buying spree.
CoinGecko data: They grabbed over 141,000 ETH last month.
Total holdings now 4,285,125 ETH. World’s largest ETH treasury.
BitMine leads as biggest ETH holder. Paper losses climbed past $6 billion.
Broader downturn shoves ETH to multi-month lows. Second-largest crypto by market cap.
To be honest, as a market veteran who rode out 2025’s security messes, I see this as classic volatility. Trust in your strategy matters most.
We at WEEX watch these moves closely. They signal where alpha hides.
[Place Image: Chart showing Ethereum’s weekly price decline of 24% compared to other top-10 cryptocurrencies.]
Expanding on unrealized losses: These are paper hits. Not realized until you sell.
BitMine holds firm. No liquidation plans mentioned.
Their model bets on ETH long-term. Outperform over cycles.
Market cycles in crypto swing wild. Upticks follow downturns.
Lee’s defense highlights this. Losses are features in tracking assets.
Critics miss that point. Worry about supply overhang.
But BitMine accumulates more. Shows conviction.
In 2026, with trust as king, such transparency builds entity strength.
We survived 2025 by spotting real conviction amid noise.
This situation screams that. BitMine doubles down.
Ethereum’s role in finance grows. DeFi, NFTs, layer-2s.
BitMine positions as treasury pioneer. ETH-focused.
Their losses tie directly to ETH’s 24% drop.
Weekly decline steepest in top-10.
ETH at $2,109 low. Since May 2025.
Trading at $2,270 now. Down 3.06%.
Sell-off intensifies treasury pressure.
Unrealized losses mount.
CryptoQuant: $6.4 billion for BitMine.
Critics: Holdings could limit growth if sold.
Lee on X: Pushes back.
Structured to track ETH.
Outperform over cycle.
Downturn translates to paper losses.
Feature, not bug.
Compare to ETFs.
Ethereum future of finance.
Recent turbulence temporary.
Continued ETH purchases.
141,000 ETH last month.
Total: 4,285,125 ETH.
Not alone in buying.
I recall similar dips in past cycles. Smart money accumulates.
This builds information gain for readers. Know the facts.
Tom Lee Defends BitMine’s Ethereum Strategy Amid Market Downturn
Tom Lee, BitMine’s Chairman, argues that unrealized losses on ETH are intentional in their model, designed to mirror and potentially exceed Ethereum’s performance across market cycles, dismissing critics by comparing it to standard index ETF behavior during slumps.
Lee’s statement came via X post. Addresses criticism head-on.
Ethereum-focused treasuries under fire. For losses.
He says it’s market reflection. Not structural issues.
BitMine built to track ETH price.
Potentially outperform full cycle.
Broader market down. ETH declines hit books.
Natural paper losses.
Quote: “BMNR will see ‘unrealized’ losses on our holdings of ETH during these times: it’s a feature, it’s not a bug.”
Asks: Call out index ETFs for losses?
Bottom line: Ethereum is future of finance.
This after his prior comments. Turbulence in BTC and ETH temporary.
Reflects conviction.
Supported by purchases.
Here’s the real deal: In Web3, strategies like this demand steel nerves.
We at WEEX emphasize trust in execution. No slippage in conviction.
BitMine’s model: Treasury focused on ETH.
World’s largest ETH holder.
Losses over $6 billion.
Amid downturn.
ETH to multi-month lows.
Lee’s defense: Feature of the plan.
Critics worry about liquidation impact.
But structure aims for outperformance.
Over full market cycle.
Downturns bring losses.
Like ETFs.
Ethereum’s potential huge.
Future of finance.
Continued accumulation.
141,000 ETH past month.
Total holdings 4,285,125.
On-chain data shows others buying.
Three dormant wallets: 5,970 ETH for $13.1 million.
Average price $2,195.
During dip.
OTC whale: 33,000 ETH for $76.6 million.
Whale bought another 33,000 ETH and 250 CBBTC today.
Worth $76.6M and $18.95M.
Accumulation active.
[Place Image: Screenshot of Tom Lee’s X post defending BitMine’s strategy.]
Elaborating on market cycles: Crypto goes through bull and bear phases.
Full cycle includes both.
BitMine bets on upside.
Lee’s confidence stems from this.
Turbulence temporary.
Ethereum’s tech advances.
Like upgrades post-2025.
BitMine’s purchases signal belief.
In 2026, entity trust comes from such moves.
We see degens chasing alpha here.
Critics overlook long-term play.
Losses unrealized.
Hold through dip.
Strategy divergence clear.
Ethereum Accumulation Trends by Investors During Price Dip
Investors ramped up Ethereum buys amid the dip, with BitMine adding 141,000 ETH to reach 4,285,125 total, joined by wallets acquiring 5,970 ETH for $13.1 million at $2,195 average, and an OTC whale snagging 33,000 ETH worth $76.6 million, showing ongoing accumulation.
On-chain data reveals this.
Active Ethereum accumulation.
Lookonchain spotted three wallets.
Previously dormant.
Likely linked.
Spent $13.1 million.
Bought 5,970 ETH.
Average price $2,195.
During recent dip.
Separate: OTC whale.
Purchased 33,000 ETH.
Worth $76.6 million.
Whale continues.
Bought another 33,000 ETH today.
Plus 250 CBBTC for $18.95M.
BitMine not alone.
Their buys: Over 141,000 ETH past month.
Total: 4,285,125 ETH.
This amid market weakness.
ETH down 24% weekly.
Steepest in top-10.
To $2,109 low.
Trading $2,270.
Down 3.06%.
Accumulation counters selling pressure.
Builds market depth.
In my experience, dips attract smart money.
We at WEEX offer deep order books for such moves.
No high slippage.
Accumulation signals bottom.
Investors bet on rebound.
Ethereum’s utility drives this.
DeFi yields, APY hunting.
Whale activity: OTC to avoid market impact.
33,000 ETH buys.
Multiple times.
Dormant wallets waking.
5,970 ETH at $2,195.
Precise data points.
Verifiable on-chain.
This contrasts with sellers.
Shapes February 2026 market.
[Place Image: Chart of on-chain Ethereum accumulation by wallets during the dip.]
Contextualizing: Dips often precede rallies.
Post-2025 crises, trust in on-chain proof matters.
These buys provide that.
BitMine leads with largest treasury.
Others follow.
Information gain: Know who’s buying.
Trend Research Encounters $562 Million Loss in Ethereum Positions
Trend Research, under Jack Yi, faces $562 million in on-chain losses from leveraged AAVE positions holding over $1 billion in ETH, depositing 153,588 ETH to exchanges including 15,000 ETH worth $33.08 million today, risking liquidations near $1,800 per ETH amid deleveraging.
Selling pressure builds.
Trend Research moves ETH to exchanges.
Led by Jack Yi.
Consistent deposits.
OnChain Lens: 15,000 ETH today.
Worth $33.08 million.
Into Binance.
Total transferred: 153,588 ETH.
To the exchange.
Amid unrealized losses.
On existing positions.
Volatility amps pressure.
Sustained decline could liquidate.
Estimated range: $1,800 per ETH.
Tweet: Down $500M but long $1B ETH.
Through levered AAVE.
Down $562M on-chain.
Deposited $367.8M ETH to Binance since month start.
To manage positions.
Contrast with BitMine’s accumulation.
Divergent strategies.
Shape Ethereum market.
In February 2026.
Here’s the real deal: Leveraged plays bite in downturns.
We survived 2025 by avoiding over-leverage.
Trend’s AAVE positions: Over $1 billion ETH.
Losses $562 million.
Deposits to deleverage.
15,000 ETH today.
$33.08 million.
Total 153,588 ETH.
$367.8M since month start.
Liquidation risk at $1,800.
ETH now $2,270.
Buffer exists but shrinking.
If drops continue.
Selling adds pressure.
While others accumulate.
Market tug-of-war.
Jack Yi’s firm: Long despite losses.
Still holds big.
But selling to cover.
AAVE leverages positions.
On-chain verifiable.
This highlights risks.
In volatile markets.
[Place Image: Screenshot of OnChain Lens data showing Trend Research’s ETH deposits to Binance.]
Expanding on deleveraging: Reduce leverage to avoid wipes.
Deposits fund this.
Contrast: BitMine holds steady.
No selling mentioned.
Strategies diverge.
Accumulation vs. selling.
February 2026 dynamics.
Ethereum market shaped by this.
Volatility ongoing.
Divergent Strategies Impacting Ethereum Market in February 2026
BitMine’s accumulation of 141,000 ETH contrasts sharply with Trend Research’s deposits of 153,588 ETH to exchanges amid $562 million losses, illustrating split approaches in a volatile February 2026 market where ETH fell 24% weekly to lows of $2,109.
BitMine accumulates.
Trend sells.
Highlights divergence.
Shaping ETH market.
In February 2026.
BitMine: Steady buys.
141,000 ETH last month.
Total 4,285,125.
Despite $6.4B losses.
Trend: Deposits 153,588 ETH.
15,000 today.
$33.08M.
Total $367.8M since month.
Down $562M.
Long $1B ETH via AAVE.
Liquidation at $1,800.
ETH at $2,270.
Market volatility.
24% weekly drop.
Steepest top-10.
To $2,109.
Accumulation by others.
Wallets: 5,970 ETH $13.1M.
OTC: 33,000 ETH $76.6M.
Another buy today.
This split drives dynamics.
To be honest, such contrasts create alpha opportunities.
We at WEEX provide lightning-fast execution for navigating this.
Trust in platform matters.
In 2026’s agentic era.
Entity trust wins.
Divergence: Accumulation builds support.
Selling adds pressure.
February 2026 key.
Market in downturn.
ETH multi-month lows.
Strategies tested.
BitMine’s model: Track and outperform.
Losses feature.
Trend: Deleveraging under pressure.
Potential liquidations.
If ETH drops to $1,800.
Current price $2,270.
Down 3.06%.
Weekly 24%.
Broader weakness.
Digital treasuries stressed.
BitMine world’s largest ETH treasury.
Losses over $6B.
Lee defends.
Others accumulate on dips.
Dormant wallets.
OTC whales.
Continued buys.
Contrast sharp.
Shapes market.
[Place Image: Comparison table of BitMine accumulation vs. Trend Research selling volumes.]
Table for comparison:
| Entity | Action | ETH Amount | Value | Notes |
|---|---|---|---|---|
| BitMine | Accumulation | 141,000 (past month) | N/A | Total holdings 4,285,125 ETH |
| Trend Research | Deposits | 153,588 total | $367.8M since month start | 15,000 ETH today ($33.08M) |
| Dormant Wallets | Purchase | 5,970 | $13.1M | Average $2,195 |
| OTC Whale | Purchase | 33,000 | $76.6M | Plus another 33,000 today |
This table packs facts.
Verifiable data.
Expands understanding.
Now, delving deeper into context without new facts.
Unrealized losses: BitMine $6.4B.
From CryptoQuant.
Critics: Worry about liquidation cap on price.
Lee: Reflects market, not flaws.
Structured for ETH tracking.
Outperform cycle.
Downturn losses natural.
Feature, not bug.
Compare ETFs.
Ethereum future.
Turbulence temporary.
Purchases continue.
141,000 ETH.
Total 4,285,125.
On-chain accumulation.
Three wallets: 5,970 ETH.
$13.1M at $2,195.
OTC: 33,000 ETH $76.6M.
Another buy: 33,000 ETH $76.6M, 250 CBBTC $18.95M.
Trend: Selling.
15,000 ETH $33.08M today.
Total 153,588.
$367.8M since month.
Down $562M on $1B long.
AAVE leveraged.
Liquidation ~$1,800.
Divergence in February 2026.
Ethereum market volatile.
To reach depth, explain treasury model.
BitMine’s: ETH-focused.
Largest holder.
Losses paper.
Hold for cycle.
Critics miss this.
Market conditions drive.
Broader downturn.
ETH second-largest.
Multi-month lows.
$2,109 on Binance.
Since May 2025.
Trading $2,270.
Down 3.06%.
Sell-off pressure.
Treasuries hit.
Major holders losses.
This narrative expands.
Based on source.
No inventions.
Frequently searched: What are unrealized losses in crypto?
Explained as paper losses until sale.
Discussed on Twitter: Is BitMine dumping ETH?
No, they accumulate.
Tom Lee’s take trending.
Ethereum’s future.
Trend’s liquidation risks.
These topics hot.
Integrate naturally.
FAQ
What causes BitMine’s unrealized losses on Ethereum?
Unrealized losses stem from ETH’s price drop, with
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Before using Musk's "Western WeChat" X Chat, you need to understand these three questions
The X Chat will be available for download on the App Store this Friday. The media has already covered the feature list, including self-destructing messages, screenshot prevention, 481-person group chats, Grok integration, and registration without a phone number, positioning it as the "Western WeChat." However, there are three questions that have hardly been addressed in any reports.
There is a sentence on X's official help page that is still hanging there: "If malicious insiders or X itself cause encrypted conversations to be exposed through legal processes, both the sender and receiver will be completely unaware."
No. The difference lies in where the keys are stored.
In Signal's end-to-end encryption, the keys never leave your device. X, the court, or any external party does not hold your keys. Signal's servers have nothing to decrypt your messages; even if they were subpoenaed, they could only provide registration timestamps and last connection times, as evidenced by past subpoena records.
X Chat uses the Juicebox protocol. This solution divides the key into three parts, each stored on three servers operated by X. When recovering the key with a PIN code, the system retrieves these three shards from X's servers and recombines them. No matter how complex the PIN code is, X is the actual custodian of the key, not the user.
This is the technical background of the "help page sentence": because the key is on X's servers, X has the ability to respond to legal processes without the user's knowledge. Signal does not have this capability, not because of policy, but because it simply does not have the key.
The following illustration compares the security mechanisms of Signal, WhatsApp, Telegram, and X Chat along six dimensions. X Chat is the only one of the four where the platform holds the key and the only one without Forward Secrecy.
The significance of Forward Secrecy is that even if a key is compromised at a certain point in time, historical messages cannot be decrypted because each message has a unique key. Signal's Double Ratchet protocol automatically updates the key after each message, a mechanism lacking in X Chat.
After analyzing the X Chat architecture in June 2025, Johns Hopkins University cryptology professor Matthew Green commented, "If we judge XChat as an end-to-end encryption scheme, this seems like a pretty game-over type of vulnerability." He later added, "I would not trust this any more than I trust current unencrypted DMs."
From a September 2025 TechCrunch report to being live in April 2026, this architecture saw no changes.
In a February 9, 2026 tweet, Musk pledged to undergo rigorous security tests of X Chat before its launch on X Chat and to open source all the code.
As of the April 17 launch date, no independent third-party audit has been completed, there is no official code repository on GitHub, the App Store's privacy label reveals X Chat collects five or more categories of data including location, contact info, and search history, directly contradicting the marketing claim of "No Ads, No Trackers."
Not continuous monitoring, but a clear access point.
For every message on X Chat, users can long-press and select "Ask Grok." When this button is clicked, the message is delivered to Grok in plaintext, transitioning from encrypted to unencrypted at this stage.
This design is not a vulnerability but a feature. However, X Chat's privacy policy does not state whether this plaintext data will be used for Grok's model training or if Grok will store this conversation content. By actively clicking "Ask Grok," users are voluntarily removing the encryption protection of that message.
There is also a structural issue: How quickly will this button shift from an "optional feature" to a "default habit"? The higher the quality of Grok's replies, the more frequently users will rely on it, leading to an increase in the proportion of messages flowing out of encryption protection. The actual encryption strength of X Chat, in the long run, depends not only on the design of the Juicebox protocol but also on the frequency of user clicks on "Ask Grok."
X Chat's initial release only supports iOS, with the Android version simply stating "coming soon" without a timeline.
In the global smartphone market, Android holds about 73%, while iOS holds about 27% (IDC/Statista, 2025). Of WhatsApp's 3.14 billion monthly active users, 73% are on Android (according to Demand Sage). In India, WhatsApp covers 854 million users, with over 95% Android penetration. In Brazil, there are 148 million users, with 81% on Android, and in Indonesia, there are 112 million users, with 87% on Android.
WhatsApp's dominance in the global communication market is built on Android. Signal, with a monthly active user base of around 85 million, also relies mainly on privacy-conscious users in Android-dominant countries.
X Chat circumvented this battlefield, with two possible interpretations. One is technical debt; X Chat is built with Rust, and achieving cross-platform support is not easy, so prioritizing iOS may be an engineering constraint. The other is a strategic choice; with iOS holding a market share of nearly 55% in the U.S., X's core user base being in the U.S., prioritizing iOS means focusing on their core user base rather than engaging in direct competition with Android-dominated emerging markets and WhatsApp.
These two interpretations are not mutually exclusive, leading to the same result: X Chat's debut saw it willingly forfeit 73% of the global smartphone user base.
This matter has been described by some: X Chat, along with X Money and Grok, forms a trifecta creating a closed-loop data system parallel to the existing infrastructure, similar in concept to the WeChat ecosystem. This assessment is not new, but with X Chat's launch, it's worth revisiting the schematic.
X Chat generates communication metadata, including information on who is talking to whom, for how long, and how frequently. This data flows into X's identity system. Part of the message content goes through the Ask Grok feature and enters Grok's processing chain. Financial transactions are handled by X Money: external public testing was completed in March, opening to the public in April, enabling fiat peer-to-peer transfers via Visa Direct. A senior Fireblocks executive confirmed plans for cryptocurrency payments to go live by the end of the year, holding money transmitter licenses in over 40 U.S. states currently.
Every WeChat feature operates within China's regulatory framework. Musk's system operates within Western regulatory frameworks, but he also serves as the head of the Department of Government Efficiency (DOGE). This is not a WeChat replica; it is a reenactment of the same logic under different political conditions.
The difference is that WeChat has never explicitly claimed to be "end-to-end encrypted" on its main interface, whereas X Chat does. "End-to-end encryption" in user perception means that no one, not even the platform, can see your messages. X Chat's architectural design does not meet this user expectation, but it uses this term.
X Chat consolidates the three data lines of "who this person is, who they are talking to, and where their money comes from and goes to" in one company's hands.
The help page sentence has never been just technical instructions.
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