‘A feature, not a bug’: BitMine chair Tom Lee pushes back on claims unrealized ETH treasury losses will cap prices
BitMine chair Tom Lee defended unrealized ETH losses as a feature of long-term treasury strategy, not a price ceiling.Summary
BitMine chairman Tom Lee refuted claims that the company's significant unrealized losses on its massive Ether holdings will suppress future ETH prices. Lee argued that these drawdowns are an expected feature of an Ethereum treasury strategy during market downturns, similar to index ETFs experiencing losses during broad declines. Critics suggested BitMine's accumulated Ether would eventually be sold, capping prices. BitMine holds approximately 4.285 million ETH, about 3.5% of the circulating supply. Lee noted that when crypto prices are pressured, the market value of these holdings falling below net asset value (mNAV) naturally constrains new share issuance, preserving capital rather than forcing asset sales during depressed periods. Despite the scrutiny, BitMine recently increased its ETH holdings and staking, and Ark Invest has increased its exposure to BitMine shares.
(Source：The Block)