BitMine chairman Tom Lee has responded to talks about the firm’s unrealized Ethereum treaury losses, arguing they are part of the design.
BitMine’s Ethereum Holdings Are In Notable Loss After The CrashHowever, since BitMine started buying right on the heels of the ETH bull rally, a lot of its tokens were purchased at levels much higher than today’s. The market downturn that followed the price growth already pushed the company’s holdings into loss, and the latest price crash has magnified them further.
Lee said that the criticism “misses the point of an ethereum treasury,” explaining that BitMine is designed to track the ETH price and outperform it over a cycle. With the market currently being in a downturn, he added, unrealized losses on the company’s holdings are to be expected during such periods.
During this downtrend, BitMine has been making a push toward staking, rapidly locking up its supply in the Ethereum staking contract to generate some passive income. So far, the firm has staked 2,897,459 ETH, corresponding to roughly 67% of its holdings.
ETH PriceEthereum saw a drop into the low $2,100 levels on Tuesday, but the coin has since seen a rebound back to $2,250.
