It’s troubling times for millionaire Tom Lee, as his investment arm BitMine Immersion Technologies (NYSE: BMNR) has a heavy concentration in Ethereum. The entrepreneur is now sitting on a $10.5 billion in unrealized losses in ETH. The second-biggest cryptocurrency by market cap plunged to the $1,500 level on Friday. Market analysts are estimating that the downturn could likely continue, making Ethereum enter further muddy waters.

Also Read: Michael Saylor Faces $14 Billion Unrealized Losses in Bitcoin

Tom Lee’s BitMine had purchased Ethereum at an average price of $3,400 to $3,900 per token. The company holds over 5.4 to 5.8 million ETH, and is close to owning 5% of the overall supply. This is a huge correction, and BitMine’s ETH portfolio has plunged by approximately 60%. A quick recovery from here is doubtful, as several macroeconomic factors are affecting the broader cryptocurrency market. However, things could change drastically in the long-term horizon.

Despite the $10.5 billion in unrealized losses in Ethereum, Tom Lee is still optimistic and remains firmly bullish. The millionaire has seen several market ups and downs and has been through it all. He has seen both the bull and the bear markets and has pushed the envelope of survival. Institutional investors mostly have a thicker skin in handling unrealized losses than the usual retail investors, who mostly panic seeing a 60% dip.

Can Tom Lee’s BitMine Recover the Investment in Ethereum?

Yes, Tom Lee’s BitMine can recover its investment in Ethereum when the market enters the bullish phase. The cryptocurrency sector has seen innumerable bear cases, followed by bullish theses. This is just another cycle of the market, and what goes down has to go up and vice versa. Ethereum is the second biggest cryptocurrency, with investments pouring in from retail and institutional giants. Smart money has been accumulating it through ETH ETFs since 2024 and will continue investing in it.