Shares of BitMine Immersion Technologies (BMNR), an Ethereum financial strategy company, have fallen to their lowest level in seven months. This decline is believed to be due to large unrealized losses stemming from the Ethereum price plunge.
On the 5th (local time), Bitmine's stock price was trading at $18.05, down 11% from the previous day. This is the lowest level since the company launched its Ethereum accumulation strategy in earnest last year. At the time, Bitmine's stock price showed volatility, briefly rising immediately after the strategy was announced.
Bitmine currently holds approximately 4.28 million Ethereum, representing approximately 3% of the total Ethereum supply. The recent plunge in the Ethereum price has significantly reduced the value of its holdings, leading to an estimated tens of billions of dollars in unrealized losses.
The price of Ethereum experienced a significant correction in a short period of time, falling below $2,000. During this process, Bitmine's financial losses rapidly increased, weighing on its stock price.
Nevertheless, Chairman Tom Lee stated in a recent statement that "unrealized losses occurring during cryptocurrency market downturns are a structural characteristic," and that "Ethereum's role as financial infrastructure is strengthening, and from a long-term perspective, the current price range may be attractive." Indeed, Bitmine is reportedly recently increasing its Ethereum holdings.
Bitmine maintains a strategy of increasing its Ethereum holdings in the long term, focusing on medium- to long-term network growth and expanded utilization rather than short-term price volatility.
