BitMine Immersion Technologies (NYSE:BMNR) is sitting on over $6 billion in paper losses after Ethereum (CRYPTO: ETH) crashed from $3,000 to $2,300, yet chairman Tom Lee added 41,788 ETH last week at an average price of $2,317.
The Underwater Position
BitMine now holds 4.285 million ETH—representing 3.55% of total Ethereum supply—worth approximately $9.6 billion at current prices.
The position peaked at nearly $14 billion in October before the recent selloff.
Lee’s Conviction Despite Losses
Tom Lee defended the accumulation strategy on CNBC, pointing to strengthening Ethereum fundamentals despite price weakness.
Network activity hit all-time highs. Ethereum daily transactions reached 2.5 million and active addresses soared to 1 million daily in 2026, according to TheBlock data.
Lee contrasted this with prior crypto winters in 2018-2019 and 2021-2022 when network activity declined alongside prices.
Lee blamed non-fundamental factors for ETH weakness.
He cited two main drivers: leverage hasn’t returned to crypto after October’s $19 billion market wipeout, and the surge in precious metals prices acted as a “vortex” sucking risk appetite away from crypto.
On gold’s correction, Lee noted it’s following 1979-1980 patterns closely.
Gold fell 9% on January 30—its fourth-largest ever daily decline. Each of the prior three larger declines marked near-term tops, Lee said.
The Staking Revenue Cushion
BitMine has staked 2.897 million ETH—up 888,192 in the past week—generating annualized staking revenue of $188 million, up 18% from the prior week.
At full scale, when BitMine’s ETH is fully staked through its MAVAN validator network launching Q1 2026, staking rewards hit $374 million annually using the 2.81% Composite Ethereum Staking Rate, or over $1 million per day.
However, this income does little to offset large price swings during fast drawdowns.
The $188 million annual run rate provides minimal protection against the $6 billion unrealized loss.
BMNR Stock Technical Breakdown
BitMine is down 6%, trapped below a descending trendline that’s capped rallies since the peak around $110.
The stock is near critical support at $29.60, with next major support at $21.67.
A breakdown below $29.60 accelerates selling pressure toward lower levels.
The Supertrend indicator flashes red at $30.05, confirming bearish momentum.
Additionally, RSI sits at 34.26—approaching oversold territory but not at extreme levels yet.
The stock needs to reclaim $35-$40 and break above the descending trendline to signal any meaningful reversal.
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