BitMine's Tom Lee Says Unrealized ETH Losses Are Inherent to Reserve Strategy, Not a Price Cap Flaw

BitMine chairman Tom Lee rejected claims that the company's roughly $6.6 billion in unrealized Ethereum losses will impose a long-term price ceiling on ETH, stating that book losses during market downturns are an inherent feature of its reserve strategy rather than a design flaw, BlockBeats reports on Feb. 4. Critics had argued the losses would eventually force selling and described Lee as "exit liquidity" for early ETH holders, while Lee countered that such views misunderstand how Ethereum reserve companies operate and said BitMine aims to track and outperform ETH over a full market cycle instead of trading short term. Over the past month, ETH has fallen nearly 30% and BitMine's share price has dropped by a similar 30%, with the company currently holding about 4,285,000 ETH, or roughly 3.5% of circulating supply, after the market value of its position slid from close to $14 billion in late 2025 and early 2026 to below $10 billion. Lee likened the situation to index ETFs, arguing that unrealized losses during systemic declines are normal, while the broader debate around ETH reserve companies has intensified as critics point to potential sell pressure and supporters highlight their role as long-term, index-like exposure tools.