As the price of Ethereum (ETH) reels from its steep drop, few companies are attracting as much attention as Bitmine Immersion Technologies (BMNR), a public company chaired by Fundstrat’s Tom Lee.
Once a small crypto-mining hardware company, BitMine has reinvented itself as the largest corporate holder of Ethereum, amassing approximately 4.24 million ETH, or approximately 3.5% of the total supply.
BitMine’s $6 billion loss puts Tom Lee’s ETH treasury in jeopardy
With ETH prices currently trading near multi-month lows and social media buzzing about around $5 billion to $7 billion in unrealized losses, one question is dominating crypto Twitter: So what would actually happen if BitMine sold Ethereum now?
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Simply put, this will likely be one of the most volatile liquidation events in Ethereum history.
Sales that the market is not designed to absorb
At the current price of $2,408, BitMine’s ETH stash is worth approximately $10.2 billion, a significant decrease compared to the estimated investment of $15.6 billion at an average entry price closer to $3,600-$3,900.
Selling that entire position would mean releasing more than 4 million ETH into a market where tens of billions of dollars are typically traded per day, but across thousands of participants rather than a single seller.
Even if implemented gradually, such volumes would overwhelm the order book. Analysts note that past whale liquidations have shown much smaller dumps causing price crashes of 10 to 30 percent in a matter of hours.
In the case of BitMine, a forced sale could cause ETH to fall another 20-40%, turning today’s paper losses into real losses.
According to market depth estimates, rather than parting with $10 billion, Bitmine could earn between $5 billion and $7 billion after slippage, effectively locking in billions of dollars in losses.
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Staking slows down the process and makes it even more cumbersome
Approximately 2 million ETH of BitMine’s holdings are staked, generating an annual return of approximately 2.8% through Ethereum’s staking mechanism. That yield, worth hundreds of millions of dollars a year, will disappear upon withdrawal.
More importantly, staked ETH cannot be sold immediately. Ethereum’s exit queue means that BitMine can’t dump everything at once, even if it wanted to, since withdrawals can be delayed by days or even weeks.
Ironically, that delay may prevent the market from collapsing immediately, but it may also prolong uncertainty as traders pre-empt an expected supply overhang.
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From crypto supercycle to piles of cash
Strategically, the sale represents a complete retreat from BitMine’s core identity. The company is positioning itself as an “Ethereum Supercycle” strategy and is even planning a Made in America Validator Network (MAVAN) for commercial launch in 2026. Liquidating ETH will completely abandon that roadmap.
Following the sale, Bitmine will transform into a mostly cash-focused company with billions of dollars in liquidity, a small amount of Bitcoin exposure (approximately 193 BTC), and a few non-cryptocurrency investments such as Beast Industries.
Volatility will fall, but so will the upside. An ETH rebound, which Lee still believes is inevitable in the long term, will be missed.
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Equity, Tax and Reputation Fallout
For shareholders, the optics could be brutal. BMNR stock has already plummeted along with ETH, and the capitulation is likely to be interpreted as capitulation.
Regardless of whether the company’s balance sheet is debt-free, there could be fears of further stock price declines or even delisting.
There is also a tax perspective. Although the current price suggests a realized loss, previous tranches that were purchased cheaper can still give rise to taxable income and eat into earnings. Regulators are also likely to scrutinize the impact a liquidation of this size could have on the market.
Finally, Tom Lee himself makes an appearance. Few strategists have been so publicly bullish on Ethereum. Selling now would go directly against his long-held theories and raise questions about his beliefs and risk management.
In theory, selling would stop the bleeding. In reality, it would crystallize the losses, cause the price of ETH to collapse, and dismantle BitMine’s entire strategy. That’s why, despite the noise on X (Twitter), BitMine may continue to buy and stake rather than sell.
Therefore, continued liquidation remains a core option as Ethereum prices continue to plummet this weekend, as does Bitcoin.
