Bitmine, a company led by Tom Lee, is facing a significant financial hit of over $1.93 billion due to the recent downturn in Ethereum (ETH) prices. This substantial loss has ignited discussions about the viability of Bitmine’s investment strategy and raised concerns about its use of a ‘treasury’ model for managing crypto assets. 🤔 Specifically, Lee’s strategy involved using ETH to hedge against broader market volatility. However, this approach is now under scrutiny as Bitmine’s holdings have significantly shrunk in value. 📉 Despite the losses, experts like Kerrisdale Capital question the long-term sustainability of Bitmine’s treasury model, suggesting a shift towards more diversified digital asset strategies instead. 👀 103 million dollars was invested in Ethereum by Bitmine as part of its strategy. This highlights how their ETH holdings now represent over 2.5% of the total Ethereum supply, an unprecedented level for corporate treasuries. The situation is drawing attention from industry leaders and analysts, who are analyzing the potential implications for broader crypto investment strategies.