Key Insights:
- BitMine’s ETH-only portfolio is $6.6B down, with zero profits and full market exposure.
- ETH must reach $7,000 for BitMine to break even, after an average buy of $3,882.
- A break below $2,150 support could push ETH toward $1,800, worsening unrealized losses.
BitMine, led by investor Tom Lee, has seen its Ethereum (ETH) portfolio fall sharply. After investing $15.65 billion over the past eight months, the portfolio is now worth $9.03 billion, showing an unrealized loss of $6.6 billion.
The drop puts BitMine at risk of recording the fifth-largest trading loss in history if the ETH holdings are sold. According to The Kobeissi Letter, the current drawdown is already about 66% of the size of the Archegos collapse in 2021. That event remains one of the largest losses ever reported in global finance.
ETH Price Slips Below Entry Levels
Ethereum was trading near $2,283, well below BitMine’s average buy price of $3,882 per ETH. Over the last week, ETH has dropped by 21%, with a 4.4% slide in the last 24 hours alone.
The portfolio’s current loss is about $6.03 billion, with no gains realized yet. All assets remain held. Data shows BitMine owns roughly 4.03 million ETH, fully exposing it to further price moves.
Social media commentary from shahh suggests that if BitMine tried to exit now, the large order would cause a 5% price drop, increasing the total estimated loss to $7 billion. “He needs ETH to hit $7,000 just to exit at breakeven,” the post said.
$2,150 Becomes Key Line for Ethereum
Traders are watching $2,150 as a critical support level for ETH. A chart from market analyst Kamran Asghar points to this area as a potential turning point. He noted,
“$ETH is at a make-or-break zone. $2,150 is the key support — hold it, and $3K+ stays in play.”
If ETH holds above this level, it may build a base for recovery. If it breaks, price could fall toward $1,800, based on past trading behavior.
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Liquidity Pressures Mount
With the portfolio made up entirely of ETH, BitMine has limited flexibility. The size of the position means that even a partial sale could move markets. So far, the portfolio shows no realized profits, meaning every dollar remains tied to Ethereum’s price.
Any deeper drop in ETH would push the position further into red territory, making it harder to exit without triggering more losses.
DISCLAIMER: The information on this website is provided as general market commentary and does not constitute investment advice. We encourage you to do your own research before investing.
