Tom Lee’s Big Crypto Bet Buckles Under Mounting Market Strain

Ethereum’s corporate-buying experiment is unraveling in real time.

The world’s second-largest cryptocurrency dropped below $3,400 on Tuesday, sliding in tandem with market bellwether Bitcoin and tech stocks as Wall Street’s AI-fueled exuberance fades. The move has pushed Ether 30% below its August peak, returning prices to levels last seen before a wave of corporate buying and holding, further cementing the token’s entry into a bear market.

Tom Lee

Photographer: Chris Goodney/Bloomberg

That reversal has left Bitmine Immersion Technologies Inc., Ethereum’s most aggressive corporate backer, facing more than $1.3 billion in paper losses, according to research firm 10x Research. The publicly traded company, backed ...