Tom Lee’s Ethereum portfolio sits at a loss of $7.35B as ETH price plummets.
As Ether (ETH) traders weigh in on the downside, Tom Lee's bearish chart setup that points bitcoin to $1,600 has led to a paper loss of around $7.3 billion on Ethereum's treasury.
Main Receptors:
Bitcoin will continue to buy ETH even in the midst of a 57% decline from its August 2025 peak. ETH price technicians warn of a 25% decline, which will push Bitmine's losses over $10 billion.
Bitmine's ETH treasury dashboard. Source: DropStab.COM
Lee continues to buy ETH despite his huge losses.
Ether has fallen more than 57% from its October 2025 peak near $4,955 on Coinbase, and the selloff is eroding Ethereum's market share. ETH dominance (ETH.D) has dropped from 15% in August 2025 to 10%.
ETH.D vs. ETH/USD Daily Performance Chart. Source: TradingView
Bitcoin began building its Ethereum treasury in July 2025, days after closing a $250 million private placement to fund its strategy. On July 14, the company announced its holdings of 163,142 ETH, which at the time was estimated at $500 million.
As of last week, BitMine held 5.28 million ETH, or about 4.37% of Ethereum's total supply, making it the world's largest publicly traded Ethereum treasury company. That means Tom Lee's company continues to accumulate ETH as its losses widen.
Lee didn't take the loss as a factor. He argued that ETH's downward slide in February could provide another buying opportunity, citing Ethereum's history of a V-shaped recovery after a 50%-plus decline.
RELATED: Ether's return was an ‘attractive opportunity' to buy 71,672 ETH: Bitmine's Lee
In May, BitMine said it would adjust the speed of its ETH purchases, but it would not abandon the strategy.
The company still expects to reach its goal of owning 5% of Ethereum's total supply by December, indicating that Lee's strategy is focused on long-term accumulation despite widening paper losses.
If ETH falls further, Bitmine's losses could grow to over $10 billion.
If ETH's current bullish setup plays out as intended, BitMine could see Ethereum's paper losses swell to over $10 billion.
Since Sunday, ETH has been hovering near the lows of the rising wedge line, a reversal pattern that usually signals a fading bullish momentum.
ETH/USD Daily Chart. Source: TradingView
A confirmed breakout below could trigger a 25% move below current prices to around $1,600 in July or August. The target is obtained by subtracting the maximum height of the wedge from the point of damage.
On the other hand, a critical rebound from the lower bound is likely to rise 19%–20% to $2,530, which is in line with the upper bound of the wedge and the 200-day exponential moving average (200-day EMA, blue line).
The crash raises BitMine's unexpected losses to nearly $10.1 billion, based on a reported holding of 5.28 million ETH and an average purchase price of $3,513.
Ethereum traders reverse the bear
Ether's bearish technical setup overlaps with other headwinds such as recent Ethereum Foundation departures, ongoing ETH ETF exits, and dampening social media sentiment.
According to ChainData Platform Sentiment, ETH sentiment worsened significantly in May, with the bull-to-bear sentiment ratio falling from 2:1 to 1:1 at the end of April.
Ethereum social media sentiment. Source: Santiment
“Historically, this type of deterioration occurs when traders lose confidence in the short-term direction of assets,” he said in a report on Friday.
“Crypto traders tend to be more sensitive during periods of underperformance, and ETH is increasingly being seen as a ‘dead money' compared to assets that have shown more strength in 2026.”
