Bitmine Buys 40,000 Ethers Despite 60% Drop

Bitmine makes a bold move. Tom Lee’s company has just purchased 40,613 ethers for $84 million, even as the cryptocurrency has plunged 60% since August.

Tom Lee is undeterred. For the Bitmine CEO, now is the perfect time to buy. “Ether remains a crucial pillar of our strategy,” he said at a press conference in New York on February 11. The company already holds the world’s largest stockpile of ether and plans to strengthen its position. Clearly, they don’t panic when prices drop. The purchase was finalized on February 10, right in the midst of the crypto storm.

But financial details remain unclear.

Bitmine is tight-lipped about how it’s financing all this. Not a word about its available reserves. Analysts are digging and finding clues: according to the 2025 annual report, the company had over $200 million in cash. That might explain this big gamble. But officially, Bitmine remains silent. And that’s making investors nervous.

Ether was trading at over $4,000 in August 2025. Today? Around $1,600. A painful drop, but one that hasn’t discouraged Tom Lee and his team. Their calculation seems simple: buy when everyone else is selling. The price even slightly rebounded after the announcement, briefly reaching $1,620 on February 11. Not a huge leap, but it’s something.

Market reactions are mixed.

Mark Stevens of Goldman Sachs doesn’t mince words: “Buying ethers at this precise moment could be risky.” He fears Bitmine could find itself in a tight spot if ether doesn’t stabilize quickly. On February 12, Bitmine’s stock fluctuated on the New York Stock Exchange. Investors are still hesitant. For more details, see Buterin pushes for integration despite risks.

An internal source at Bitmine reveals that the purchase sparked debate at the board meeting in January. Some members were not keen, fearing the financial impact. But Tom Lee apparently had the final say. And he plans to continue on this path. “Bitmine plans to continue its strategic investments despite fluctuations,” he told Bloomberg on February 15.

BlackRock is watching closely. The fund released a report on February 14 mentioning Bitmine’s purchase. For them, it could prompt others to reconsider their stance on cryptocurrencies. But they warn: without clear communication from Bitmine, uncertainty will persist. And that’s exactly the issue.

JP Morgan also weighs in. Their analysts see this purchase as a possible sign of confidence in market stabilization. But they point out Bitmine’s lack of transparency. It’s hard to know if this strategy will hold up in the long term.

Trading volumes remain low compared to historical levels. Even though the price has slightly risen after the announcement, the market remains cautious. Too many unanswered questions. Will Bitmine really increase its stake in other cryptos as Tom Lee suggested? Details remain vague. Related coverage: Bitcoin Crashes Under K as Bears.

The next shareholder meeting in March could provide answers. Investors are hoping for clarifications on Bitmine’s strategy. For now, Tom Lee is playing the mystery card. Not sure it reassures everyone, but it certainly gets people talking.

The industry is waiting to see if other companies will follow Bitmine’s example. Buying massively during a downturn is risky but can pay off big if the market rebounds. Tom Lee seems to firmly believe in it.

Bitmine’s accumulation strategy is part of a broader trend observed among tech companies. MicroStrategy, a pioneer in corporate crypto investments, has held over 190,000 bitcoins since 2020. Tesla also invested $1.5 billion in bitcoin before reducing its position. These precedents show that major companies view cryptocurrencies as an alternative store of value, despite their extreme volatility.

Bitmine’s purchase comes as the Ethereum ecosystem is at a pivotal moment. Developers are preparing several major updates for 2025, including improvements to the “sharding” system that could drastically reduce transaction fees. Meanwhile, institutional adoption of Ethereum is progressing: Visa now processes some payments via the network, and several European banks are testing solutions based on this blockchain. For Tom Lee, these technical developments likely justify his long-term bet, even if the timing is bold.