Tom Lee’s BitMine Ethereum Investment Nearing “Worst Trade Ever,” According to Ross Gerber
February 2, 2026
Renowned investment expert Ross Gerber criticized the approach of BitMine Immersion Technologies Inc. regarding their Ethereum trade, labeling it as potentially one of the “worst trades ever.” The chief executive of Gerber Kawasaki Wealth and Investment Management expressed concern over the substantial unrealized losses incurred by the company due to its ETH holdings.
According to recent data, BitMine’s Ethereum investments were valued at around $8.98 billion, which is significantly less than the $15.65 billion initially invested in them. As a result, the company is facing staggering unrealized losses amounting to approximately $6.65 billion at present. Gerber’s comments on Twitter hinted at the severity of the situation, indicating that it could be a disastrous trade for BitMine.
Gerber has been advising against investing in lesser-known cryptocurrencies and instead encourages investors to focus on well-established digital currencies like Bitcoin and Ethereum, which he refers to as the “king” and “queen” of the cryptocurrency world. In contrast, he has criticized the cryptocurrency treasury models employed by Strategy Inc., led by Michael Saylor, labeling them as unsustainable.
BitMine transitioned into an ETH treasury company last year, under the guidance of Wall Street veteran Tom Lee, who serves as the chair of the company. With a substantial cache of 4.243 million ETH, BitMine has emerged as one of the largest corporate holders of Ethereum. However, the recent decline in the price of ETH has had a significant impact on BitMine’s financial position. Since the launch of its ETH treasury pivot in June 2025, ETH has experienced a more than 10% decline in value.
Despite the challenges, Lee remains optimistic about the potential of Ethereum. He advised investors not to abandon ETH due to the fear of missing out (FOMO) and highlighted the remarkable gains in the precious metals sector that have diverted attention away from technologies like AI and cryptocurrency.
As of the latest data, Ethereum was trading at $2,221.96, reflecting a 7.51% decline over the past 24 hours. BitMine’s shares also closed 5.99% lower during the last regular trading session. Year-to-date, the stock has experienced a decline of over 7%, indicating a weaker price trend in the short, medium, and long terms, according to Benzinga’s Edge Stock Rankings.
The situation faced by BitMine raises questions about the viability of its strategy and the potential risks associated with large-scale cryptocurrency investments. The company’s future outlook remains uncertain as it grapples with significant paper losses and mounting challenges in the volatile crypto market.
