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Key Takeaways

Tom Lee believes Ethereum is nearing the end of a “mini crypto winter.”

Bitmine recorded a $3.1 billion Q1 loss.

He remains bullish on Ethereum’s long-term outlook.

Bitmine posted a $3.8 billion Q1 quarterly loss while its chairman, Tom Lee, said Ethereum may be entering the “final stages” of a crypto downturn.

The New York-listed firm, which has pivoted from crypto mining into one of the world’s largest Ethereum treasury companies, disclosed the loss in its latest regulatory filing — even as it continued to aggressively accumulate the token.

Bitmine’s quarterly $3.8 billion loss was largely driven by accounting adjustments tied to declines in Ethereum’s price from prior highs.

Ethereum’s price has fallen by over 53% from its prior all-time high in August 2025.

Under fair-value accounting rules adopted in recent years, unrealized swings in crypto prices are reflected directly in earnings.

Despite the loss, Lee struck an optimistic tone, saying the company has accelerated purchases of Ethereum in recent weeks.

“Ethereum is in the final stages of the ‘mini-crypto winter,’” Lee said, adding that Bitmine acquired more than 71,000 ETH in the past week — its fastest pace since late 2025.

The company now holds around 4.87 million Ethereum, worth about $11.8 billion alongside cash and other investments.

Market analysts say Ethereum may be showing tentative signs of recovery after a prolonged downturn, though the outlook remains uncertain.

At the time of reporting, Ethereum was trading at $2,323, up around 3% in the past seven days.

According to CCN analyst Victor Olanweraju, the token has begun to regain technical structure after breaking out of a bearish phase, with momentum indicators pointing to improving capital inflows.

Ethereum’s move above key support levels marks an “early recovery,” he said, but warned that stronger resistance lies ahead near the $2,700 level.

Sustained trading above roughly $2,400 could support further gains toward higher levels, while a drop below that range would signal a return to consolidation, he said.

Bitmine’s accumulation has reached a new milestone, with the company now holding about 4.04% of Ethereum’s total circulating supply of roughly 120.7 million tokens.

Lee has previously described reaching 5% ownership — what he calls the “alchemy of 5%” — as a strategic target that would allow the company to shift from accumulation to monetization.

The firm estimates staking could eventually generate hundreds of millions of dollars annually.

However, Bitmine’s growing concentration has raised questions among market participants about Ethereum’s decentralization.

Lee has pushed back on the threat, claiming the 5% stake would not lead to excessive influence over the network.

In October, Lee told Ark Invest that discussions with analysts at Fundstrat and Standard Chartered suggested that ownership levels of up to 10% would still not threaten Ethereum’s decentralization.

Separately, Lee argues that structural tailwinds — including Wall Street’s increasing use of blockchain technology— will continue to support Ethereum’s long-term value.

Lee’s latest outlook builds on a broader thesis that Ethereum is either at — or very near — a cyclical bottom.

In March, Lee highlighted analysis from market technician Tom DeMark, who sees similarities between Ethereum’s recent price action and major equity market drawdowns such as the 2011 U.S. debt ceiling crisis.

According to Lee, Ethereum’s pattern shows a high degree of correlation with those historical episodes and claimed the worst of the decline may already have passed.

“If those analogues hold, ETH likely either bottomed in early March or is bottoming now,” Lee said, framing the current phase as a late-stage bear market rather than the start of a deeper downturn.

Despite near-term uncertainty, Lee has stayed strong on his bullishness for Ethereum’s long-term.

If Bitcoin were to reach $250,000, he said Ethereum could trade between $12,000 and $22,000 based on historical ratios.

He also has listed more optimistic scenarios where valuations go much higher.

“We believe Ethereum is the future of finance,” he said. “It’s going to be a payment rail.”

Adding: “If Bitcoin gets to a million, that would value ETH at $250,000.”

However, Lee’s renewed confidence comes after a previous call that Ethereum would bottom near $2,500 and rally toward $9,000 by early 2026.

The miss has prompted some investors to question the timing of his market signals, even as his broader thesis remains unchanged.

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The post Tom Lee Says Ethereum in ‘Final Stages’ of Crypto Winter as Bitmine Reports $3.8B Loss appeared first on ccn.com.