Bitmine Immersion Technologies (NYSE: BMNR) Chairman Tom Lee is cautioning investors about potential selling pressure on Ethereum (CRYPTO: ETH) following a sharp crash in South Korea’s stock market.
South Korea’s benchmark KOSPI index plunged more than 6% on October 13, driven by a steep pullback in stocks tied to the artificial intelligence trade.
Lee took to social media to warn that forced stock sales among South Korean investors could spread losses into cryptocurrencies, with Ethereum particularly exposed.
He pointed to South Korea’s high participation rate in crypto markets as a key reason digital assets could face collateral damage from the equity selloff.
Lee specifically flagged brokerage margin liquidations as a mechanism that could generate additional selling pressure on ETH and other digital currencies.
Despite the warning, Lee stressed that any negative impact on Ethereum prices is likely to represent only “short-term pain” for the broader market.
South Korea’s stock market has been volatile throughout the year, with investors selling technology stocks amid fears of rising competition in memory chips from Chinese rivals.
Trading on the KOSPI was suspended several times on October 13 as panic selling gripped the market and circuit breakers were triggered.
Lee expressed concern about leveraged investors facing forced liquidations following sharp declines in their stock portfolios, and about the risk of broader financial contagion spreading globally.
Bitmine itself holds a significant stake in Ethereum, owning nearly 5% of ETH’s circulating supply, a position valued at more than $15 billion.
Ethereum was trading at approximately $2,500 on October 13, making the scale of Bitmine’s exposure substantial and giving Lee a direct financial interest in the token’s price stability.
BMNR stock has declined 58% over the past 12 months, with shares trading at $23.83, reflecting broader headwinds facing crypto treasury companies in a turbulent digital asset environment.
