I also saw a bunch of people mocking Tom Lee @ fundstrat on the timeline, saying that Bitmine has already sent this wave After watching this too much, my hands feel a little itchy What is Bitmine doing? Sort it out from beginning to end @Comparison of Trend between BitMNR and Jackyi_1d Floating losses are 10 times greater But apart from huge floating losses, there's nothing else to worry about, and it's not really a problem First, identify a point that is often confused Bitmine is not a hedge fund that trades ETH I'm not betting on short-term prices either They are an Ethereum vault company The mode is so simple that it's a bit boring Long term continuous buying and holding of ETH Currently holding approximately 4.2 million ETH on paper The average cost is between $3600 and $3900 The current price is 2100 US dollars Unrealized losses of approximately $7.5 billion As soon as this number is displayed Many people subconsciously immerse themselves in narratives such as liquidation, liquidation, and death spiral But these words are basically not used here The reason is simple There is no additional margin, no clearing line, and no Aave revolving leverage here They are not the kind of players who rely on high leverage to bet on trends, such as Trend Research, which has already exploded $747 million The main sources of funding for Bitmine are three 1/Equity Financing 2/Operating cash flow 3/Pledge income Without debt, there is no structural pressure to be forced to sell The worst-case scenario is that the stock price will follow ETH, which is the normal state of a treasury company Their goal is also very straightforward, to hold 5% of the total supply of Ethereum in the long term When the goal is to accumulate at a level of 5%, short-term price fluctuations themselves do not constitute a core variable. What really matters is how many chips can be saved in hand before the next cycle arrives The lower the price, the higher the accumulation efficiency. That's why there's a very interesting comparison At the same price of $2100, Trend Research was forced to sell 651000 ETH And Bitmine continued to buy 20000 coins in the same price range Same price, opposite action One is the high leverage structure being squeezed out of the market One is building a ten-year scale position Tom Lee once said that book losses are a part of design Placed in the vault model, rollback is not a bug, but a feature This logic is applied to Bitcoin, and in fact, everyone has already read it in its entirety When BTC is at $100000, @ Taylor is a god BTC returns to $76000, some people start saying it's dangerous When BTC falls to $16000 in 2022 Almost everyone believes that this model cannot continue But structurally, nothing has changed, just keep buying Bitmine is following the same path, only exchanging BTC for ETH There is no forced selling mechanism, so we can wait for any pullback to naturally run out The pledged income is approximately 3 to 4 points, continuously covering a portion of the cost Stocks and ETH are highly linked, ETH recovers, and stock prices naturally recover The whole logic is not complicated, but it takes a long time The group of people who mock Tom Lee now has a high degree of overlap with those who mocked Saylor for $16000 back then At that time, everyone repeatedly asked the same question: how could we still buy after losing so much Later on, it was discovered that it was precisely that location that was the most logical place to continue buying in the long run So let's go back to the problem itself Is Bitmine in trouble none No debt No liquidation risk Pledged cash flow is positive Still accumulating The rest, it just takes some time The tide of capital foam Will eventually flock to BTC and ETH