Two of crypto’s most prominent corporate treasury companies, Michael Saylor’s Strategy and BitMine Immersion Technologies, are sitting on massive unrealized losses after recent market weakness dragged Bitcoin and Ethereum sharply lower. Despite continued accumulation by both firms, the downturn has exposed the risks inherent in large concentrated positions during extended sell-offs.
Strategy’s Bitcoin Bet and BitMine’s Ethereum Treasury Face Heavy Drawdowns
With BTC dipping below $70,000 today, Strategy’s Bitcoin portfolio saw its unrealized losses climb into the multibillion-dollar range. At the current price of $69,200, Strategy’s 713,502 BTC stash, acquired at an aggregate cost of $54.26 billion, now has an unrealized loss of $4.89 billion.
Similarly, BitMine Immersion Technologies, the Nasdaq-listed firm chaired by Fundstrat’s Tom Lee, has seen its 4.28 million Ethereum holdings take dramatic paper losses estimated at over $7.71 billion. This drawdown reflects a significant divergence between BitMine’s high aggregate cost of $16.51 billion and current market prices at $2,050.
Both firms had recently begun ramping up Bitcoin and Ethereum accumulation to boost their reserves, respectively. As of early February 2026, Strategy held 713,502 BTC, acquired at an average cost basis of around $76,052 per coin.
Similarly, the corporate Ethereum treasury firm, BitMine, holds approximately 4.285 million ETH, representing roughly 3.5% of Ethereum’s circulating supply. Much of that ETH is staked, around 2.9 million tokens, generating yield but also locking that capital in longer-term commitments.
Implications for Both Corporate Crypto Treasury Models
The scale of unrealized losses Strategy and BitMine have experienced underscores the inherent tension between treasury accumulation strategies and market realities. Large, singular exposure to volatile assets like Bitcoin and Ethereum amplifies both gains and losses in ways that diversified models might mitigate.
Nevertheless, Strategy’s continued buying illustrates the firm’s steadfast belief in Bitcoin’s long-term value. In early February, the company added an additional 855 BTC to its holdings at an average price near $87,974, bringing total reserves to over 713,000 BTC even as prices sagged.
Market watchers note that Strategy’s cost basis and scale mean that any significant future decline in Bitcoin could continue to widen unrealized losses, pressuring the company’s share price and investor sentiment. Strategy’s reliance on capital markets to fund purchases and support its treasury position remains a factor analysts are watching closely, especially if weakness persists.
Tom Lee Redefines the Narrative
Tom Lee has also publicly defended BitMine’s approach. Rather than mining itself as a central revenue stream, BitMine pivoted to an Ethereum-first accumulation strategy, amassing a significant share of the supply and staking much of it. Lee characterized the unrealized losses as “a feature, not a bug,” likening BitMine’s exposure to Ethereum to that of passive index vehicles that naturally lose value during market-wide downtrends.
Lee further argues that as an ETH treasury vehicle, BitMine’s performance is designed to track Ethereum’s price over the full cycle and that holding through downturns is inherent to its role. The firm has continued to expand its ETH reserves even during the downturn, including a recent acquisition of 41,788 ETH valued at roughly $96 million, signaling conviction in ETH’s long-term prospects.
Temitope Olajide
The CoinRemark Team
