BMNR news: Tom Lee says BitMine’s $6 billion ether paper loss is “by design"
Tom Lee defended BitMine's $6 billion unrealized ETH loss, stating it is an intentional feature of their strategy to track and outperform Ether over a full market cycle.Summary
BitMine Immersion chairman Tom Lee addressed criticism regarding the firm's $6 billion in unrealized paper losses on its Ethereum holdings, asserting that this drawdown is intentional and reflects the design of their ETH treasury strategy, not an execution flaw. Lee explained on X that BitMine is structured like an index product meant to track and ultimately outperform Ether over a complete market cycle. Given the current crypto downturn, these paper losses on ETH holdings are expected. The losses stem from Ether's price slide reducing the value of BitMine's 4.24 million ETH holdings to about $9.6 billion from nearly $14 billion in October. BitMine positions itself as an ether treasury company focused on long-term accumulation and staking yield, a strategy Lee maintains is sound, concluding that "ethereum is the future of finance."
(Source：CoinDesk)