BitMine Immersion Technologies purchased 40,613 Ethereum (ETH) worth approximately $86 million last week while carrying unrealized losses approaching $8 billion on its treasury holdings.
The publicly-traded company now owns 4.33 million ETH representing 3.58% of circulating supply, acquired at an average cost near $3,800 per token.
Ethereum traded around $2,125 on Feb. 8 when BitMine disclosed the purchase, 57% below its August 2025 all-time high of $4,946.
The company's total Ethereum holdings are valued at $9.2 billion against an acquisition cost exceeding $16 billion according to analytics platform DropStab.
Doubling Down During Collapse
BitMine Chairman Tom Lee defended the purchases as capitalizing on "attractive" pricing given what he described as "strengthening fundamentals."
The company continues buying as Ethereum extends its decline from last summer's peak, with the token briefly falling to $1,824 last week before recovering.
"ETH sees V-shaped recoveries from major lows. This happened in each of the eight prior declines of 50% or more," Lee said in a statement, predicting similar price action in 2026. He characterized the current drawdown as presenting "best investment opportunities."
The company's average acquisition cost sits approximately 79% above current market prices. BitMine acquired its first 3.7 million ETH for $14.95 billion according to SEC filings, establishing an average cost basis around $4,001 per token. Subsequent purchases have lowered the average slightly but remain substantially underwater.
Read also: Why Did Bitcoin Crash 52% From $126K Peak As $1.2B Daily Losses Flash Capitulation?
Market Questions Strategy
Shares of BitMine declined 53% over the past six months as the stock tracked Ethereum's deteriorating price performance. The company's equity traded around $20 in early February, down from a 52-week high of $161 reached in July 2025 when it announced the Ethereum treasury strategy.
BitMine holds 193 Bitcoin (BTC) alongside its Ethereum position, plus $595 million in cash and stakes in Beast Industries and Eightco Holdings totaling $219 million.
The company generates staking income on 2.87 million of its Ethereum holdings, though this yield remains insufficient to offset the magnitude of unrealized losses.
The treasury approach mirrors Strategy's Bitcoin accumulation strategy, with both companies buying aggressively during market downturns while sitting on billions in paper losses. Whether these positions represent conviction-based accumulation or compounding risk depends entirely on cryptocurrency price trajectories over coming years.
Read next: Strategy Buys Bitcoin Above Average Cost While Sitting On $5 Billion Unrealized Loss