Michael Saylor and Tom Lee are facing renewed scrutiny as the companies tied to their crypto treasury strategies sit on large unrealized losses after sharp declines in Bitcoin and Ethereum. Strategy Inc., formerly MicroStrategy, now carries an estimated paper loss of about $11.2 billion to $11.3 billion on its Bitcoin holdings, while Bitmine Immersion Technologies faces an estimated $8.9 billion to $9.38 billion unrealized loss on its Ethereum treasury.
The losses are not personally realized losses for Saylor or Lee, but they are closely linked to their public investment strategies. Saylor has led Strategy’s long-running Bitcoin accumulation plan, while Lee chairs Bitmine, which has shifted into an Ethereum-focused treasury model.
Strategy holds 843,706 BTC at an average acquisition price of $75,699 per coin. Its total Bitcoin cost basis is about $63.8 billion to $63.9 billion. With Bitcoin trading below $63,000, the value of the company’s reserve has fallen to around $52.6 billion.
Strategy’s Bitcoin Bet Moves Into Paper Loss
Strategy’s Bitcoin position has turned negative by about 17% after six years of accumulation. The downturn has added pressure to MSTR stock, which recently traded near $124.70 in pre-market activity and around $128.98 during the previous session. The stock is down about 77% from its record high.
Source: X
The company recently sold 32 BTC for about $2.5 million at an average price of $77,135 per coin. That sale drew attention because Strategy had long been associated with a buy-and-hold Bitcoin strategy. Since that sale, the value of its Bitcoin position has dropped by more than $11 billion as BTC continued falling.
Saylor has pushed back against claims that the Bitcoin strategy is impaired. He said capital markets have directed about $400 billion into artificial intelligence infrastructure over six months, while Bitcoin ETFs have seen about $4 billion in outflows since May 14. In his view, the current weakness reflects capital rotation rather than a failure of Bitcoin’s long-term thesis.
Tom Lee’s Bitmine Faces Ethereum Drawdown
Bitmine Immersion Technologies has also come under pressure as Ethereum fell below $1,800. The company holds more than 5.4 million ETH, equal to about 4.5% of Ethereum’s circulating supply. Its position is worth close to $10 billion at current prices, compared with an estimated investment value near $18.8 billion.
Bitmine’s unrealized Ethereum loss is estimated between $8.9 billion and $9.38 billion. The company accumulated much of its ETH at an average cost near $3,500 per token, leaving the treasury deep in paper-loss territory after the latest decline.
Source: X
BMNR shares fell below $17 and have dropped about 28% since early May. The stock is now trading at its weakest level since the company announced its Ethereum treasury pivot in 2025.
Bitmine has tried to offset part of the pressure through staking. The company has staked about 4.7 million ETH, roughly 87% of its holdings, through its MAVAN network. That setup is estimated to generate about $276 million to $300 million in annualized staking revenue.
Crypto Treasury Models Face Bear Market Test
The weakness at Strategy and Bitmine shows how digital asset treasury companies remain exposed to crypto price cycles. Strategy’s model depends heavily on Bitcoin appreciation and capital-market access, while Bitmine’s model depends on Ethereum price stability, staking income, and investor demand for ETH-linked equity exposure.
Strategy’s preferred stock product, STRC, has also come under pressure. It recently traded near $94.60 to $94.85, below its intended $100 level, with yields above 12% in market commentary. Critics argue that weak preferred pricing could raise future funding costs, while supporters say Strategy still has several tools to manage its capital structure.
Bitmine has filed to raise $300 million through 3 million shares of 9.5% Series A perpetual preferred stock under the ticker BMNP. The company said proceeds may be used to buy more ETH, expand staking infrastructure, fund working capital and repurchase common stock.
Other Ethereum treasury firms have also faced losses. FG Nexus reportedly bought about 50,600 ETH at an average price near $3,940 and later recorded heavy losses after selling more than 38,000 ETH. Its reported loss figure reached $888.3 million, with a Q1 2026 net loss of $38.6 million.
The losses at Strategy, BitMine, and FG Nexus are part of a wider market reset. More than half of the Bitcoin supply is already sitting near or below cost basis, while other on-chain data placed supply in profit near 55%, close to the level where bear-market stress has historically increased.
Realized losses have also risen, with Glassnode data showing aggregated realized losses reaching $1.3 billion per day as Bitcoin moved back toward $62,000. Long-term holders accounted for about $770 million, or 59%, of those realized losses, showing that some cycle-top buyers who held through the decline are now exiting at a loss.
Source: X
The pressure is affecting investor sentiment toward digital asset treasury firms. These companies were built around the idea that public-market capital could be converted into scarce crypto assets and held over long periods. That model benefits when token prices rise, but it can face tighter conditions when the underlying assets fall below average purchase prices.
