If you opened a crypto app recently, you probably saw prices falling again. For BitMine, that drop isn’t just on a screen. It’s on the company’s balance sheet.  

As Ethereum fell below $2,100, BitMine, a company backed by investor Tom Lee, slipped into about $7 billion in unrealized losses. The loss isn’t final, but it shows how painful the market has become for firms that tied themselves closely to one crypto asset. 

How BitMine Built a Huge Ethereum Position 

BitMine didn't end up here by accident. The company made a clear choice to focus on Ethereum and buy it at scale. In a company statement, BitMine said, “As of February 1st, 2026 at 6:00 pm ET, the Company's crypto holdings are comprised of 4,285,125 ETH at $2,317 per ETH (Coinbase), 193 Bitcoin (BTC), $200 million stake in Beast Industries, $20 million stake in Eightco Holdings (NASDAQ: ORBS) (‘moonshots’) and total cash of $586 million.” 

The statement also showed how large the bet is, noting that “BitMine's ETH holdings are 3.55% of the ETH supply.” That means BitMine controls a meaningful share of all Ethereum in circulation, making its fortunes closely tied to the price of ETH. 

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Prices Fall Even as Ethereum Use Grows 

What makes the situation harder is that Ethereum itself is being used more than ever. BitMine highlighted this gap in another statement, saying, “ETH prices have dropped sharply in the past month from ~$3,000 to ~$2,300,” even though “Ethereum daily transactions hit an all-time high (ATH) of 2.5mm” and “active addresses soared in 2026 to an ATH of 1 million daily.” 

In other words, more people are using Ethereum, but the price is still falling. This has raised questions about whether the market is more focused on short-term fear than on long-term growth. 

Tom Lee Is Not Backing Down 

Despite the losses, BitMine isn't stepping away. Tom Lee has said the company still believes in Ethereum’s future. Instead of slowing down, BitMine recently bought another 41,000 ETH, even as prices stayed under pressure. 

For now, BitMine sits in a difficult spot. The company is holding one of the largest Ethereum positions in the world at a time when prices are weak. Whether this turns into a smart long-term move or a painful lesson will depend on what happens next in the crypto market. 

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