BitMine Buys 40K ETH Amid Market Turbulence
The Ether-focused treasury firm expanded its holdings during the sell-off despite mounting unrealized losses and volatile market conditions.
BitMine Immersion Technologies has doubled down on its Ethereum treasury strategy, acquiring tens of thousands of Ether during a recent market correction even as the company faces significant drawdowns on its existing position.
The firm disclosed on Feb. 9 that it purchased 40,613 ETH last week, bringing its total holdings to more than 4.326 million ETH, valued at roughly $9 billion at current prices. The company did not reveal the average purchase price of the newly acquired Ether.
The move underscores BitMine’s continued conviction in Ethereum’s long-term fundamentals despite heightened volatility and ongoing pressure across the broader crypto market.
Buying the Dip Despite Unrealized Losses
BitMine’s aggressive accumulation comes at a time when its Ether position is reportedly deep underwater, reflecting the market downturn that has weighed on digital asset prices since late 2025.
Chairman Tom Lee said the company sees the correction as an opportunity rather than a risk.
“Bitmine has been steadily buying Ethereum, as we view this pullback as attractive, given the strengthening fundamentals,” said Lee in a press release. “In our view, the price of ETH is not reflective of the high utility of ETH and its role as the future of finance.”
A substantial portion of the company’s holdings — 2,873,459 ETH — is currently staked on the Ethereum network. Staking locks tokens to help secure the blockchain and generates rewards paid in additional Ether, creating a yield-based revenue stream alongside market exposure.
Treasury Strategy Under Scrutiny
BitMine’s approach has drawn criticism from some market observers, particularly as Ether’s price has fluctuated sharply and the firm’s equity performance has weakened.
However, the company continues to generate operating cash flow from two primary sources:
- Ethereum staking rewards, which provide ongoing crypto-denominated income
- Immersion-cooled data center operations, supporting high-performance computing infrastructure
The company reported that the combined value of its crypto holdings, cash, and “moonshot” investments stands at $10.0 billion, down from $10.6 billion in digital assets at the end of the November 2025 quarter, according to a filing.
Lee has repeatedly defended the treasury strategy, emphasizing that BitMine is structurally designed to move in line with Ethereum’s market performance. As a result, the company expects equity declines during downturns and recovery when ETH rebounds.
That volatility has been reflected in its stock performance. Shares have fallen more than 31% over the past month and roughly 60% over six months.
Market Stress and Liquidations Pressure ETH
Ethereum’s price has faced sustained pressure amid a broader crypto market downturn triggered by heavy liquidations.
Following an October flash crash that resulted in approximately $19 billion in forced sell-offs, prices have trended downward through November and again in late January. During last week’s sell-off, ETH dropped to around $1,741 before rebounding to near $2,000, and was trading at about $2,130 at the time of writing.
The prolonged volatility has prompted some institutional players to rethink exposure. Ether-focused investment firm Trend Research reportedly reduced its holdings as part of a broader risk-management strategy.
Yet most companies with Ethereum on their balance sheets have avoided selling into weakness.
Industry data indicates:
- No major ETH treasury company besides BitMine added to its holdings in the past 30 days
- More than two dozen firms largely maintained existing positions
- Quantum Solutions was the only notable seller, offloading about 600 ETH during the same period
BitMine Leads Corporate Ethereum Holders
Among publicly tracked entities, BitMine remains the dominant corporate holder of Ethereum.
According to CryptoPulse.News’ Crypto Treasury Tracker, the company holds approximately 4,325,738 ETH, placing it well ahead of other public firms with Ether exposure. Leadership has previously stated a long-term ambition to acquire up to 5% of the circulating ETH supply, a target that would cement BitMine’s role as one of the most influential institutional participants in the Ethereum ecosystem.
The scale of these holdings makes the company highly sensitive to price swings, but also positions it to benefit significantly from any sustained recovery in ETH.
Long-Term Conviction vs. Short-Term Volatility
BitMine’s continued accumulation highlights a growing divide among institutional players navigating the current crypto cycle. Some firms are reducing exposure to manage risk, while others — particularly treasury-focused companies — are leaning into volatility as a strategic entry point.
For BitMine, the thesis remains unchanged: Ethereum’s utility, staking economy, and expanding role in digital finance underpin its long-term value proposition.
While short-term losses and stock volatility may persist, the company’s strategy reflects a broader bet that institutional adoption, on-chain utility, and staking-driven yields will ultimately outweigh near-term price fluctuations.
As the market continues to digest liquidation-driven shocks and macro uncertainty, BitMine’s aggressive positioning serves as a clear signal that some institutional players still view Ethereum not just as a tradable asset — but as core financial infrastructure for the next phase of the digital economy.
