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Watch the price of Ethereum (ETH) fall due to a strong selloff, and no name has gained more attention than Bitmain Emergence Technologies (BMNR), the public company led by Tom Lee of Fundstraat.
From a modest cryptocurrency mining equipment company, Bitmain has reinvented itself into the largest corporate holder of Ethereum, amassing around 4.24 million ETH, about 3.5% of the total supply.
A $6 billion Bitmine hit puts Tom Lee’s Ethereum treasure
trade price Ethereum (ETH) Currently near its lowest levels in several months, and with media buzz about book losses ranging between $5-7 billion, one question dominated Crypto Twitter: What would really happen if Bitmain sells Ethereum now?
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The short answer, he concluded: This will probably be one of the most disruptive liquidation events in Ethereum history.
A sale that the market cannot absorb
It is estimated that in Current prices are at $2,408Bitmain shares of ETH are worth about $10.2 billion, dropping sharply from an estimated investment of about $15.6 billion at average purchase prices between $3,600-3,900.
Selling this entire position would mean injecting more than 4 million ETH into a market that typically trades tens of billions of dollars every day, but through thousands of participants and not just one seller.
He stated that even if the implementation was gradual, such a volume would overwhelm the order books. Analysts pointed to historical whale liquidations that showed much smaller sales caused price drops of 10-30% in a few hours.
In Bitmain’s case, a forced sell could push ETH up an additional 20-40%, turning today’s book losses into real losses.
Instead of coming out with $10 billion, Bitmain was likely to receive $5-7 billion after the price slippage, based on market depth estimates, resulting in a loss of billions of dollars.
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Caching makes things slower and more complicated
It explains that about 2 million Ether of Bitmain shares are frozen via the Ethereum storage mechanism.It earns an annual return of about 2.8%. This income, worth hundreds of millions a year at this size, will disappear immediately upon exit.
Most importantly, he explained, frozen ether cannot be sold immediately. The Ethereum queue can delay withdrawals for days or even weeks, which means Bitmain couldn’t sell everything at once even if it wanted to.
Analysts noted that this delay can protect the market from an immediate collapse, but also extend the period of uncertainty, as traders go ahead of the expected flows of excess supply.
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From the major bull cycle of digital currencies to the accumulation of money
Strategically, the sale will reflect a complete withdrawal from Bitmain’s core identity. The company has established itself as a company based on the “Ethereum Super Cycle”, and is also planning to launch. Made in America Auditor Network (MAVAN) Commercially in 2026. The liquidation of ether would mean abandoning this scheme completely.
Post-sale reveals that Bitmain will transform into a company dominated by cash: several billion dollars in liquidity, minor exposure to Bitcoin (about 193 BTC), and some non-crypto investments, Like Best Industries.
Expectations are that volatility will decrease, but earnings will also decrease. Lee explained that any rebound in the ether, which he still portrays as inevitable in the long run, will not be missed.
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Actions, fees and reputational implications
For shareholders, the picture can be tough. BMNR stock has already fallen sharply alongside EtherSurrender is likely to be seen as defeat.
Expect further declines, or even fear of delisting, regardless of whether the company’s balance sheet is debt-free.
Also note the tax angle. While current prices mean losses, batches purchased at previously lower prices may result in taxable gains, reducing returns. Regulators may also scrutinize a liquidation of this size because of its potential impact on the market.
Finally he discussed the role of Tom Lee himself. beincrypto reported that there were few strategists who were more publicly bullish on Ethereum. Any sale now would directly contradict his long-standing thesis, raising questions about conviction versus risk management.
Make sure that, in theory, the sale stops the bleeding. In practical application, the sale leads to stabilization of losses, a collapse of the eth price, and the dismantling of the entire Bitmain strategy as stated by beincrypto. For this reason, despite the hype on the X platform (Twitter), Bitmain can continue to buy and store, and not sell.
Note that, therefore, as the price of Ethereum, as well as Bitcoin, continues to collapse this week, liquidation continues to remain the nuclear option.
