Seeing many of you roasting tom lee on my timeline
so i actually sat down and looked at what bitmine is doing
is Bitmine and Tom lee in trouble ?
first of all Bitmine isn't a hedge fund making eth trades..
they're building an ethereum treasury company.. the entire model is: accumulate and hold eth. that's it.
their current holdings: 4.2M ETH
average cost: ~$3,600-3,900
current price: $2,100
unrealized loss: ~$7.5B
and everyone thinks this is a disaster but here's what you all miss:
there's no margin call. no liquidation price. no aave loop.
they're not leveraged gamblers like trend research (who just blew up $747M)
bitmine buys eth with:
> equity raises
> operational cash flow
> staking rewards
no debt. no forced selling. no death spiral.
worst case? stock tracks eth price. which it does..
their goal is not to trade eth. it's to OWN 5% of total ethereum supply.
when you're trying to accumulate 5% of an asset, you don't care about short-term price
you care about how much you can accumulate before the next cycle
and so here's the thing everyone misses:
lower prices = better accumulation
and so while trend research capitulated and sold 651k eth at $2,100... bitmine BOUGHT 20k more eth at $2,100
same price. opposite actions.
one was over-leveraged and forced out. one is building a decade-long position.
tom lee literally said "the paper losses are by design"
because when you're building a treasury, drawdowns are features not bugs
think about microstrategy and saylor:
- btc at $100k: genius
- btc at $76k: everyone saying he's finished
- btc at $16k (2022): everyone said it was over
structurally nothing changed. he kept accumulating.
bitmine is the same model, just with eth instead of btc
no forced selling = can wait out any drawdown
staking income = ~3-4% yield helps offset
stock tracks eth 1:1 = if eth recovers, stock recovers
simple. boring. long-term.
the people roasting tom lee right now are the same ones who roasted saylor at btc $16k
"how can you keep buying? you're already down billions!"
turns out, that's exactly when you SHOULD be buying if your thesis is long-term
so is bitmine in trouble?
no
• no debt
• no liquidations
• cash flow positive from staking
• still accumulating
