Looking back, BitMine's aggressive bet on ether didn't really end as they expected. The company accumulated over 4 million ETH over time, but when prices started to fall from October's highs, their holdings went from nearly $14 billion to just $9.6 billion. That means paper losses of over $6 billion just on their ether reserves.

What's interesting is that just before the drop, they bought more than 40,000 additional ether. The timing wasn't exactly ideal, let's say. When markets fall and liquidations happen on-chain, large corporate treasuries like this amplify the movement. Ether plummeted to around $2,300 as selling pressure accelerated everywhere.

Tom Lee, who is linked to the operation, recently changed his tone. He went from being optimistic to warning that market deleveraging would remain complicated until early 2026. He mentioned that that October drop wiped out nearly $19 billion in sector market value, readjusting positions everywhere.

The company is trying to offset some of this with staking, which generates about $164 million annually, but that barely scratches the surface of the losses when the price drops so quickly. So basically, their balance strategy turned into an expensive lesson on timing in cryptocurrencies. Even with billions in holdings, you can't escape market cycles.