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BitMine’s $6 Billion Ethereum Paper Loss Raises Liquidation Risk

Analysts warn a forced sale could knock ETH another 20% to 40%.

Overview

  • BitMine holds about 4.24 million ETH, roughly 3.5% of supply, now valued near $10.2 billion at prices around $2,408.
  • The position reflects an estimated $5 billion to $7 billion in unrealized losses versus average entry levels near $3,600 to $3,900.
  • Market depth analysis suggests a full unwind might net only $5 billion to $7 billion after slippage versus mark-to-market value near $10 billion.
  • About 2 million ETH are staked, and Ethereum’s exit queue would delay access for days or weeks, limiting any rapid liquidation.
  • A large sale would upend BitMine’s staking and validator plans and, commentators say, conflict with Tom Lee’s public bullish thesis on ETH.