BitMine Immersion Technologies (BMNR), the public company known for holding the world’s largest corporate Ethereum (ETH-USD) treasury, is dealing with a challenging start to 2026. BMNR stock dropped almost 12% in premarket trading on Monday. Led by Chairman Tom Lee, the firm has aggressively accumulated 4.24 million ETH, representing roughly 3.5% of the total circulating supply. While this maximum conviction strategy was designed to leverage the long-term growth of the Ethereum network, a recent period of market liquidations has pushed the company’s unrealized losses past the $6 billion mark.
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As Ether’s price dropped toward $2,300 this past weekend, BitMine’s portfolio value fell to approximately $9.6 billion, a steep decline from its $13.9 billion peak recorded in October.
Liquidity Gaps and Leverage Trigger Price Air Pockets
The recent sell-off has been intensified by a lack of trading depth and high levels of debt in the crypto markets. Analysis from The Kobeissi Letter suggests that sustained levels of extreme leverage are resulting in air pockets in price, where values drop rapidly because there are no immediate buyers to catch the fall.
This herd-like behavior among traders often leads to cascading liquidations, particularly when major assets like Bitcoin (BTC-USD) and Ether break through key psychological support levels. For BitMine, whose balance sheet is almost entirely tied to Ether, these sharp movements create significant short-term volatility for shareholders.
Tom Lee Forecasts a Difficult Reset Before Recovery
Despite the current paper losses, Tom Lee remains committed to the treasury model, though he admits the market is currently in a painful deleveraging phase. Lee pointed to the October 10, 2025 crash, which erased nearly $19 billion in market value, as a pivotal moment that fundamentally shifted investor risk appetite. He believes that while the long-term fundamentals of blockchain technology remain intact, 2026 is starting with a necessary cleansing of speculative excess. In his view, the market needs to wash out these levered positions before a more sustainable bull cycle can begin later in the year.
BitMine Leans Into Its MAVAN
To offset the volatility of Ether’s price, BitMine is leaning heavily into its Made in America Validator Network (MAVAN). The company has already staked nearly one-third of its holdings, which currently generates an estimated $164 million in annual revenue. If the firm manages to stake its entire 4.24 million ETH stash, Lee projects that staking rewards could exceed $374 million annually, or roughly $1 million per day. This income provides a critical cash buffer, allowing the company to fund its operations without having to sell its core ETH holdings at a loss during market dips.
Structural Shifts Are Required for a Market Turnaround
A broader recovery for the sector may depend on more than just a price bounce. Market maker Wintermute recently argued that a true wealth effect in 2026 will require structural changes, such as increased participation from Exchange-Traded Funds (ETFs) and a return of retail investors.
Currently, much of the retail interest has shifted toward other tech sectors. Wintermute’s analysts noted that investors are increasingly gravitating toward faster-growing themes such as artificial intelligence and quantum computing, leaving the crypto market searching for a new influx of capital to drive prices back toward previous highs.
Is BitMine Stock a Good Buy?
Turning to TipRanks, BMNR stock has a Moderate Buy consensus rating based on two Buy ratings from analysts assigned in the last three months. The average 12-month BMNR price target sits at $43, implying an upside potential of 71.3%.
