BitMine has significantly expanded its Ethereum holdings with a recent purchase totaling $358 million, reinforcing its position as one of the largest institutional holders of the cryptocurrency. The firm acquired 14,665 ETH from Galaxy Digital, valued at approximately $65 million, and an additional 65,000 ETH from FalconX, worth around $293 million. This strategic move adds roughly 80,000 ETH to BitMine’s wallets, bringing its total holdings to an impressive 1,947,299 ETH, with a current value of about $8.69 billion.
The acquisition occurred within a remarkable 24-hour timeframe, demonstrating BitMine’s aggressive strategy to build its treasury by leveraging market fluctuations. Prior to this, the company had added 153,075 ETH, valued at roughly $668 million, just a week earlier. These recent developments highlight BitMine’s capability to outpace other corporate holders of Ethereum, with the second-largest institutional holder, SharpLink Gaming, maintaining a stash that is less than half the size of BitMine’s. This significant difference underscores the institutional benchmark BitMine has set in the crypto space.
On-chain analyst Yu Jin noted the swift transfer of around 80,000 ETH in just one hour, indicating the formidable resources of BitMine and the efficiency of major liquidity providers, such as Galaxy Digital and FalconX, in executing large transactions without causing market disruptions.
Following BitMine’s substantial purchase, Ethereum’s price experienced a rise of over 2% within 24 hours, further contributing to a monthly rally of 21%. Analysts suggest that this stability reflects growing investor confidence and positions Ethereum for potential further gains. As institutional demand for ETH surges and staking activities increase, the supply of ETH is tightening, which is anticipated to favor price appreciation over the long term. This year, public companies and exchange-traded funds have amassed over five million ETH, translating to more than $23 billion in new capital inflows.
Staking plays a critical role in reducing the liquid supply of Ethereum, as many investors choose to lock their tokens to earn staking rewards and enhance network security. Recent regulatory clarity from the U.S. Securities and Exchange Commission regarding liquid staking services has bolstered investor confidence, resulting in over 35.6 million ETH—representing around 30% of the circulating supply—being locked.
Tom Lee, a prominent Wall Street figure, has consistently voiced his belief that Ethereum is undervalued in the context of long-term institutional adoption. He draws parallels between Ethereum’s current position and Bitcoin’s trajectory during 2017, when it began drawing significant interest from large financial entities but had yet to achieve mainstream visibility. Lee’s stance suggests that those who establish substantial ETH portfolios now will likely reap greater rewards as institutional demand accelerates.
Moreover, Lee posits that these developments signify a broader financial transition that could redefine Ethereum’s role in the global economy. He likens BitMine’s accumulation strategy to a crucial historical moment in 1971 when the United States moved away from the gold standard, unlocking new monetary flexibility and stimulating long-term growth. Lee anticipates that if the Federal Reserve implements interest rate cuts, historically linked to asset price increases, Ethereum may experience a growth trajectory comparable to Bitcoin during its formative adoption phase.
