Strategy And BitMine Sit On Over $16B In Crypto Paper Losses As BTC And ETH Slide

Strategy and BitMine are sitting on more than $16 billion in combined unrealized losses after Bitcoin and Ethereum fell sharply, putting the two biggest public crypto treasury trades under fresh pressure.

Bitcoin dropped more than 5% during the latest market move, sliding from an intraday high near $70,690 to a low around $65,517 before trading near $66,900. Ethereum fell more than 6%, dropping from about $1,996 to $1,819 before stabilizing near $1,864.

That move hit the treasury trade directly. Strategy’s Bitcoin stack is now roughly $7.4 billion below cost. Tom Lee’s BitMine is carrying an estimated $8.86 billion unrealized loss on its Ethereum position, making ETH’s decline even more painful for the company’s balance sheet.

Strategy’s Bitcoin Bet Drops Below Cost

Strategy holds 843,706 BTC at an average purchase price of $75,699, giving the company one of the largest Bitcoin positions in the world. At BTC near $66,900, the position is worth about $56.4 billion against a cost base near $63.9 billion.

The loss is unrealized, but the timing is uncomfortable. Strategy recently made its first disclosed BTC sale since 2022, unloading 32 BTC to help fund preferred-stock distributions. That sale was tiny compared with the company’s total holdings, but it weakened the old “never sell” narrative just as Bitcoin moved further below the company’s average cost.

Strategy remains the dominant corporate Bitcoin holder. The question now is not whether the company still has conviction. It is whether BTC weakness, preferred-share obligations and weaker stock-market access make the balance-sheet model harder to defend if the selloff continues.

BitMine’s ETH Treasury Takes The Sharper Hit

BitMine’s drawdown is even more severe in percentage terms. The company’s latest update shows 5,416,901 ETH, equal to about 4.49% of Ethereum’s supply.

At ETH near $1,864, that treasury is worth roughly $10.1 billion. The widely tracked $8.86 billion paper-loss estimate implies a cost base close to $19 billion, or roughly $3,500 per ETH.

BitMine’s strategy is built around Tom Lee’s push to own a major share of ETH supply and stake the position for yield. Staking can generate income, but it does not erase the mark-to-market damage from a multi-billion-dollar ETH drawdown.

The pressure has been building for months. Earlier BitMine Ethereum treasury losses were already turning into a major market story. The latest ETH slide pushes the loss estimate closer to $9 billion.

Public Crypto Treasury Trade Faces A Hard Test

The BTC and ETH selloff is testing the public-company treasury model at its weakest point. These stocks work best when crypto prices rise, net asset value expands and companies can raise capital at favorable premiums to buy more coins.

The loop breaks down when the treasury asset falls below cost. Investors start focusing on dilution, funding costs, preferred-stock obligations, staking risk and whether management can keep buying without damaging shareholders.

Strategy and BitMine do not have to sell because their losses are unrealized. But the market is no longer only pricing conviction. It is pricing how much pain the treasury model can absorb if Bitcoin and Ethereum keep falling.

For now, the numbers are stark. Strategy is down more than $7 billion on paper. BitMine is down nearly $9 billion on ETH. Together, the two flagship crypto treasury bets are carrying more than $16 billion in unrealized losses as the market’s sharp BTC and ETH selloff puts balance-sheet crypto exposure back under stress.

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