ETH is declining, but BitMine continues to purchase. It seems that the liquidation price is not far off?

Ethereum Reserve Company BitMine Continues Buying ETH During Market Downturn, Holdings Surpass 4.32 Million ETH but with a Paper Loss of $7.6 Billion. ETH Has Fallen 62% from Its High, and Chairman Tom Lee Is Optimistic About a V-Shaped Reversal. But What If ETH Drops Below $1,600? Will BitMine’s Paper Losses Fully Consume Its Market Value? Could It Be Liquidated Then?

BMNR Continues Buying ETH

BitMine revealed its latest cryptocurrency holdings yesterday. As of February 8, the company holds assets worth $10 billion, including:

4,325,738 ETH

193 Bitcoin

$19 million in Eightco Holdings stock (ORBS)

$200 million in Beast Industries shares

$595 million in unallocated cash

Over the past week, BitMine purchased 40,613 ETH, bringing its total to 3.58% of Ethereum’s total supply, reaching 72% of the “5% Alchemy” target.

ETH Has Fallen 62% from Its High. What Does Tom Lee Say?

Ethereum’s price has dropped 62% from its 2025 peak, yet daily trading volume hit a record high of 2.5 million transactions, and active addresses surged to a daily high of 1 million in 2026.

BitMine Chairman Tom Lee stated:

“Cryptocurrency prices are highly volatile. In fact, since 2018, Ethereum has fallen 50% or more from recent highs for the eighth time. This means similar declines happen annually, but each time, a V-shaped rebound follows. A similar rebound is expected in 2026. The best investment opportunities in cryptocurrencies often appear after declines. Remember 2025, when the best entry point was right after the market sharply dropped due to tariff concerns.”

BitMine’s Paper Losses Reach $7.6 Billion. How Far Is the Liquidation Price?

Data tracking platforms show that BitMine’s average cost basis for ETH is around $3,863. At the current ETH price of $2,100, its unrealized losses amount to $7.6 billion. BMNR’s current market cap is only $9.7 billion, meaning its losses have already reached 78% of its market value. If ETH drops below $1,600, BitMine’s paper losses will fully wipe out its market value. Could it be liquidated then?

(BitMine ETH Paper Losses Near $7 Billion, Yilihua Sells at a Loss: Too Early to Be Bullish on ETH)

However, Tom Lee is betting on this V-shaped reversal. Due to DAT’s leverage characteristics, during declines, oversold conditions occur. If ETH can indeed bounce back as he predicts, BMNR might have a chance for a rebound.

(Tom Lee Predicts a Bounce in 2026, Unfazed by 20% Retracement Risk, BitMine Expands ETH Holdings)

Is this article about ETH’s decline and BitMine’s continued purchases suggesting that the liquidation price is near? Originally published on Chain News ABMedia.