BitMine Adds $90M in ETH as Tom Lee Calls Sentiment "Rock Bottom" — What It Means for Ethereum Price

The purchase was BitMine's largest weekly ETH acquisition of 2026, bringing holdings to 4.37 million ETH valued at $8.7 billion. 3.62% of Ethereum's total supply. The company bought at $1,998 per token and sits on $7.9 billion in unrealized losses, while the stock has fallen 22% year-to-date alongside ETH's 33% decline.

BitMine has staked 3 million ETH generating $176 million annually at 2.89% yield, while maintaining $670 million in cash reserves. This continues corporate Ethereum accumulation as institutional players adopt treasury strategies. Understanding cryptocurrency for beginners provides context on how these strategies work.

Tom Lee described sentiment as "rock bottom," comparing it to November 2022 and 2018 lows. Both preceded sharp recoveries after extended capitulation. "Investor sentiment and enthusiasm are at rock bottom," Lee stated, noting one difference, there haven't been dramatic collapses like FTX. Instead, weakness stems from October 10 deleveraging.

Lee highlighted three drivers: Wall Street tokenization adoption, AI integration for payments, and proof-of-humanity standards on Layer 2 networks. Sentiment alone isn't a reliable timing tool though.

Good risk management means sizing for prolonged depression.

Corporate treasury purchases reduce the free-floating supply available for trading. When firms stake large positions, those tokens effectively leave liquid markets for extended periods. However, corporate accumulation provides narrative support rather than serving as a guaranteed price catalyst, since macro liquidity conditions still dominate short-term ethereum price action.

Treasury firms typically operate debt-free or use non-recourse financing structures. They don't face the margin calls and forced liquidations that devastate leveraged retail traders during volatile periods. This structural difference creates a potential floor dynamic during extreme drawdowns, though these floors need market testing before they can be trusted.

During heightened volatility,maker vs taker fees widen significantly as liquidity providers adjust their risk parameters.

Peter Thiel's Founders Fund exited its 7.5% ETHZilla stake per SEC filing Tuesday. The stock fell 7% to $3.20 down from its August peak above $107. ETHZilla has reduced holdings since October, selling $40 million for buybacks and $74.5 million in December for note redemptions. It now holds 69,802 ETH worth $139 million.

The company pivoted toward tokenization and launched ETHZilla Aerospace offering jet engine equity. Thiel's exit reminds investors that treasury stocks carry equity risk beyond asset price. Using hedging strategies helps protect against these unique risks.