E Guard Heartbroken! Ethereum's two giants lose 6.9 billion, Garret Jin's over 100 million in assets wiped out

Ethereum underperforming, BitMine holds 4,285,126 ETH with an average cost of $3,879, showing an unrealized loss of $6.68 billion, yet Cathie Wood’s Ark Invest still contrarily bought $6 million worth of BitMine stock. Garret Jin, founder of BitForex, was forcibly liquidated for $220 million, with ETH losing $196 million.

BitMine Loses $6.68 Billion, Cathie Wood Buys More Against the Trend

As the publicly traded company holding the most Ethereum, BitMine currently owns about 4,285,126 ETH at an average cost of $3,879.06. At the current price of $2,320, the unrealized paper loss is $6.68 billion. This scale of loss is staggering, representing roughly a 40% reduction in BitMine’s Ethereum investment. Since the 2021 bull market, BitMine has been aggressively buying ETH, with the market generally optimistic that Ethereum would surpass Bitcoin to become the top market cap cryptocurrency. However, this expectation has been completely dashed; Ethereum not only failed to surpass Bitcoin but also lost significant market share to new chains like Solana.

However, BitMine’s strategy is to hold spot ETH and stake it for yield, which avoids forced liquidation issues. This approach is very different from leveraged traders. BitMine’s ETH is not collateralized for loans; even if the price drops to $1,000, it won’t be forcibly sold. Staking yields about 3%-5% annually, which doesn’t offset the losses from price declines but at least generates cash flow. This “hold and wait” strategy is extremely rare in the crypto market; most institutions use leverage or derivatives to amplify gains, which also amplifies risks.

But BitMine’s chairman, Tom Lee, remains highly trusted by investors. Cathie Wood’s Ark Invest bought over $6 million worth of BitMine stock on February 2, contrary to the trend. This contrarian accumulation indicates Ark Invest’s confidence in BitMine’s long-term value and Tom Lee’s judgment. Known for contrarian investing, Ark’s buys often occur during the most pessimistic market moments. During the 2022 bear market, Ark Invest also contrarily increased holdings in Coinbase and Tesla, ultimately reaping substantial returns during the rebound of 2023-2024.

Tom Lee is a well-known bullish analyst on Wall Street, whose long-term optimism for tech stocks and cryptocurrencies has never wavered. Even in the face of a $6.68 billion paper loss, Tom Lee has not changed his strategy. This persistence may stem from confidence in Ethereum’s fundamental technology or from the sunk cost fallacy. Regardless, BitMine’s large holdings make it an important anchor for Ethereum’s price; as long as it doesn’t sell, the market loses a significant selling pressure source.

BitMine Holdings and Strategy

Holdings: 4,285,126 ETH

Average Cost: $3,879

Current Loss: $6.68 billion (about 40% decline)

Risk Status: No leverage, no liquidation risk, staking yield 3-5%

Institutional Support: Cathie Wood’s Ark Invest contrarily bought $6 million on February 2

BitMine’s case shows that even a spot holding strategy without leverage can face huge unrealized losses during a market downturn. However, compared to leveraged traders, BitMine at least retains the option to “wait out the bear market for the bull market.” This difference is vividly illustrated in the next case.

Garret Jin’s From $200 Million Myth to $222 Million Liquidation to Zero

(Source: Hyperliquid)

The last and most tragic: Garret Jin, founder of BitForex, the legendary whale on Hyperliquid. According to reports, two days ago, during the crypto market crash, Garret Jin was forcibly liquidated for a total of $220 million. Of this, $196 million was in Ethereum, accounting for 88%. All assets exceeding $100 million are now wiped out. This case is the most painful lesson of leveraged trading: from making $200 million shorting Bitcoin in October to losing $222 million going long Ethereum in January, it took only three months.

Garret Jin’s story is full of drama. In October 2025, just minutes before Trump announced tariffs, he established a $1 billion short position on Bitcoin and Ethereum, which subsequently profited him about $200 million during the market crash. This near-perfect timing raised insider trading suspicions, but it was never proven. This huge profit made Garret Jin a rising star, a legend on crypto Twitter.

But arrogance after victory destroyed him. Garret Jin then built a $730 million long position on Ethereum, with 88% concentrated in ETH. Such an extremely concentrated position is inherently risky, especially with leverage possibly up to 5-10x, amplifying any adverse price movements. When Ethereum fell from $3,000 to $2,000, a 33% drop, at 5x leverage it became a 165% loss, far exceeding the principal, triggering forced liquidation.

Zhu Su, founder of Three Arrows Capital, said: “In my experience, selling at the top is often more dangerous than selling during a decline. Because the excitement of selling at the top can lead to premature additional buying and overconfidence. I suspect Garret, after October 10, also made a similar arrogant mistake.” Zhu Su himself went bankrupt in 2022 due to Three Arrows Capital’s collapse, and his comments carry deep self-reflection.

Garret Jin’s 3-Month Rollercoaster

October: Shorted BTC/ETH before tariffs, made about $200 million, became a legend

End of October to December: Built a $730 million ETH long position, 88% concentrated in ETH

February: ETH plummeted, triggering liquidation, losing $222 million, with ETH accounting for $196 million, assets wiped out

Garret Jin’s tragedy reveals the cruelest truth of the crypto market: one success does not guarantee forever success; overconfidence and extreme leverage can destroy everything in an instant. This case should be etched on every leveraged trader’s screen as an eternal warning.

The plight of these two Ethereum bulls is a microcosm of the entire ETH whale community. When Bitcoin surged to $100,000, many investors expected ETH to catch up, given that historically ETH/BTC ratio usually fluctuates between 0.05-0.08. However, Ethereum performed abnormally weak, with ETH/BTC dropping below 0.02 to a record low. This abnormal weakness shattered everyone’s expectations, causing heavy losses for full ETH holdings, putting pressure on large bulls, and rapidly increasing market risk.