Tom Lee’s Bitmine Faces Up to $7B ETH Exposure Risk as Ethereum Slips to the $2100 level

Bitmine, the Ethereum-focused investment firm led by Chairman Tom Lee, faces unrealized losses approaching $7 billion as Ethereum’s price slides to the $2,100 level. The firm holds approximately 3.7 million ETH, representing 3.5% of the circulating supply.

Ethereum dropped 5.94% in the last 24 hours, trading at $2,112.50 at press time. The decline represents a 29.52% weekly loss, pushing the asset’s market capitalization down to $254.96 billion.

Bitmine purchased its ETH holdings for over $15 billion. At current prices, the stash is worth roughly $8.42 billion. This gap leaves the firm with approximately $7 billion in unrealized losses.

ETH just fell below $2,100.

Tom Lee(@fundstrat)'s #Bitmine holds 4,285,125 $ETH($8.42B) and is now sitting on over $7B in losses.https://t.co/7zjVRSk2ZO pic.twitter.com/jY96F0QpP9

— Lookonchain (@lookonchain) February 4, 2026

BMNR stock slipped nearly 2% at the close of trading on February 3, according to Yahoo Finance data. Pre-market trading saw an additional 1% decline the following session.

Lee Defends Ethereum’s Treasury Strategy Amid Market Weakness

Tom Lee addressed the mounting paper losses during recent communications with stakeholders. He attributed the drawdown to broader market weakness rather than execution failures.

These tweets miss the point of an ethereum treasury:
– BitMine is designed to track the price of $ETH
– outperform over the cycle (think up ETH)
– crypto is in a downturn, so naturally ETH is down$BMNR will see “unrealized” losses on our holdings of ETH during these times:
-… https://t.co/VpoNjAnJdC

— Thomas (Tom) Lee (not drummer) FSInsight.com (@fundstrat) February 3, 2026

According to Lee, Bitmine’s treasury strategy is designed to track Ethereum’s price movements. The goal is to outperform ETH over complete market cycles.

The chairman clarified that the current losses align with the firm’s operational design. He emphasized that the situation does not reflect problems with strategy execution.

Meanwhile, Ethereum ETF data from Lookonchain reveals mixed institutional sentiment. Daily net flows showed positive movement of 17,340 ETH worth $38.15 million.

However, the seven-day picture tells a different story. Weekly outflows totaled 129,292 ETH, valued at $284.44 million.

Feb 4 Update:#Bitcoin ETFs:
1D NetFlow: -1,185 $BTC(-$88.96M)🔴
7D NetFlow: -11,202 $BTC(-$841.3M)🔴#Ethereum ETFs:
1D NetFlow: +17,340 $ETH(+$38.15M)🟢
7D NetFlow: -129,292 $ETH(-$284.44M)🔴#Solana ETFs:
1D NetFlow: +13,901 $SOL(+$1.32M)🟢
7D NetFlow: -3,550… pic.twitter.com/bdOLSb1T5i

— Lookonchain (@lookonchain) February 4, 2026

Bitmine Stakes More Than 50% of Ethereum Holdings

Despite the steep losses, Bitmine continues acquiring more Ethereum. On January 26, the firm purchased an additional 41,788 ETH.

The majority of Bitmine’s holdings are staked. On January 27, the company reportedly staked 209,504 ETH.

Lee expressed confidence that Ethereum will stage a significant recovery. He pointed to expectations of a massive gold rally as a potential catalyst.

Other institutional players appear to share this long-term conviction. ARK Invest purchased 274,358 shares of Bitmine recently.

In contrast, Ethereum co-founder Vitalik Buterin sold $5.12 million worth of ETH this week. The transaction adds to ongoing observations of insider activity.

Trend Research has come under renewed pressure. The firm reportedly deposited an additional 10,000 ETH, worth approximately $21.2 million, into Binance in order to sell the assets and repay outstanding loans. Despite the recent transfer, Trend Research is said to still hold about 488,172 ETH, valued at roughly $1.05 billion.

Ethereum Technical Analysis Shows Oversold Conditions

Ethereum’s daily chart confirms an entrenched downtrend with accelerating structural breakdown. Price currently touches the lower Bollinger Band at approximately $2,130.

The band width has expanded significantly, signaling a high volatility environment. ETH continues walking the lower band, a textbook bearish trend signal.

Repeated failures at the 20-day Simple Moving Average around $2,830 confirm strong resistance overhead. The middle band has rejected every recovery attempt.

The Relative Strength Index sits at 23.91, deep in oversold territory. No bullish divergence has formed, confirming continued momentum deterioration.

Volume analysis reveals institutional distribution patterns. Red volume spikes accompanied recent declines, while green volume bars on rally attempts remain consistently smaller.

Immediate support at $2,100-$2,150 is currently under test. A daily close below $2,100 opens the path to $2,000 psychological support.

Major support lies at $1,850-$1,900, where meaningful accumulation could begin. This zone aligns with Fibonacci extension targets and previous consolidation areas.

Resistance levels include $2,400-$2,450, where broken support now acts as resistance. The critical $2,830 level requires reclaiming with volume for any trend reversal.

The base case scenario projects continued decline toward $1,850-$1,900 over one to three weeks. Bearish thesis invalidation requires a daily close above $2,830 with expanding volume.