Bitmine Goes Big on ETH: Treasury Tops 4.1M After Massive $201M Buy
Bitmine’s Ethereum Treasury Expands as Tom Lee Targets 5% of Total ETH Supply
As much of the cryptocurrency market remains cautious, one firm is moving decisively in the opposite direction. Bitmine, chaired by Fundstrat co-founder Tom Lee, has significantly expanded its Ethereum holdings, adding more than $200 million worth of ether in a single wave of purchases. The move has pushed the company’s total Ethereum treasury beyond 4.1 million ETH, making it one of the largest known holders of the digital asset globally.
The aggressive accumulation has sparked debate across both traditional finance and crypto markets. Why is Bitmine buying so much ether at a time when prices remain under pressure, and what does this strategy signal about the long-term outlook for Ethereum?
A Strategy That Mirrors MicroStrategy, but With Ethereum
Bitmine’s approach has drawn frequent comparisons to MicroStrategy’s bitcoin-centric treasury strategy. While MicroStrategy became synonymous with institutional Bitcoin accumulation, Bitmine is attempting something similar with Ethereum, positioning the blockchain network as the foundation for its long-term balance sheet strategy.
As of December 22, Bitmine’s Ethereum treasury was valued at approximately $12.2 billion, despite recent volatility in ether prices. The company’s holdings have continued to grow steadily, even as broader crypto markets have struggled to regain momentum.
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| Source: Xpost |
On-chain data analyzed by hokanews shows that Bitmine recently acquired 67,886 ETH, valued at roughly $201 million, within a 24-hour period. These transactions were traced to accounts associated with major custodial and exchange platforms, including Kraken and BitGo, indicating institutional-grade execution rather than speculative retail buying.
Bitmine Now Controls More Than 3% of Ethereum’s Supply
According to company disclosures and publicly available blockchain data, Bitmine now holds approximately 4,066,062 ETH. That figure represents around 3.37 percent of Ethereum’s total circulating supply, placing the firm among the largest single holders of the asset.
The pace of accumulation has been particularly notable. Over the past week alone, Bitmine added nearly 99,000 ETH to its treasury. One of the most prominent purchases occurred on December 22, when the company acquired 13,412 ETH for approximately $40.6 million.
The average purchase price for recent acquisitions stands near $2,991 per ETH, suggesting a disciplined accumulation strategy rather than reactive buying based on short-term price movements. Blockchain records show consistent inflows from custodial platforms, reinforcing the view that Bitmine is executing a long-term plan rather than engaging in opportunistic trades.
Tom Lee has publicly stated that the firm is working toward a goal of owning 5 percent of Ethereum’s total supply, a threshold he refers to as the “alchemy of 5 percent.” While ambitious, the target underscores the scale of Bitmine’s conviction in Ethereum as a foundational digital asset.
Tom Lee’s Long-Term Vision for Ethereum
Tom Lee has long been one of Wall Street’s most prominent advocates for digital assets. While he is widely known for his bullish views on Bitcoin, Lee has increasingly emphasized Ethereum’s role as the infrastructure layer for the future of finance.
In recent remarks cited by hokanews, Lee suggested that Ethereum could eventually reach a price of $62,000 per coin. While such projections remain speculative, his thesis is grounded in several structural trends, including institutional adoption, tokenization of real-world assets, and the growth of staking and decentralized applications.
For Bitmine, Ethereum is not simply a speculative asset. The firm views it as a core technological platform capable of bridging traditional financial systems with blockchain-based infrastructure. This belief is reflected in the company’s plans to expand beyond passive holding and into active participation in the Ethereum network.
Staking and the “Made in America Validator Network”
A key component of Bitmine’s Ethereum strategy is its planned staking infrastructure. The company has announced plans to launch the Made in America Validator Network, or MAVAN, in early 2026.
Through this initiative, Bitmine aims to operate Ethereum validators within the United States, positioning itself as a compliant and institutionally aligned participant in the network’s security and consensus mechanisms. Staking allows holders of ether to earn yield by helping validate transactions, effectively turning ETH holdings into a productive asset.
Lee has described MAVAN as a way to align national infrastructure, regulatory clarity, and blockchain innovation. By staking a portion of its treasury, Bitmine could generate recurring revenue while reinforcing its long-term commitment to Ethereum.
Market Reaction and BMNR Stock Performance
Despite the scale of Bitmine’s accumulation, the market response has been mixed. Shares of BMNR, the company’s publicly traded stock, declined by approximately 4 percent, closing near $29.78.
Intraday price charts show a downward trend, suggesting short-term selling pressure as investors weigh the risks associated with heavy exposure to Ethereum during a period of price weakness. Ether itself fell more than 1 percent to around $2,928, according to data reviewed by hokanews.
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| Source: CMC |
Technical indicators point to near-term dominance by sellers in the ETH market, even as fundamentals remain relatively stable. This divergence highlights the tension between long-term institutional strategies and short-term market sentiment.
Institutional Backing Strengthens the Treasury Strategy
Bitmine’s aggressive Ethereum accumulation is supported by a strong network of institutional backers. The firm has received funding and strategic support from major investment players, including ARK Invest led by Cathie Wood, Pantera Capital, Galaxy Digital, Digital Currency Group, Kraken, and Founders Fund.
Tom Lee himself has also contributed personal capital, further aligning management incentives with the company’s long-term strategy. This level of institutional involvement distinguishes Bitmine from many crypto-focused firms that rely primarily on retail participation or speculative capital.
As of December 21, Bitmine reported total crypto assets, cash, and so-called “moonshot” investments valued at approximately $13.2 billion. Of that total, around $1 billion consisted of cash reserves, smaller Bitcoin holdings, and equity positions in other ventures.
Why Accumulate ETH During Market Uncertainty?
The timing of Bitmine’s accumulation has raised questions among market observers. With Ethereum prices under pressure and broader macroeconomic uncertainty weighing on risk assets, some investors are asking why the firm is accelerating its purchases now.
Supporters of the strategy argue that market pullbacks often present the best opportunities for long-term accumulation. By acquiring ETH during periods of weakness, Bitmine lowers its average cost basis and positions itself for potential upside when market conditions improve.
Critics, however, caution that concentrating such a large portion of a corporate treasury in a single digital asset carries significant risk. Ethereum’s long-term success depends on continued developer activity, regulatory clarity, and its ability to maintain dominance amid competition from other smart contract platforms.
Ethereum’s Role in Institutional Finance
Ethereum’s appeal to institutions lies in its versatility. Beyond serving as a store of value, it underpins a vast ecosystem of decentralized finance applications, tokenized assets, and smart contracts.
Major financial institutions have increasingly explored Ethereum-based solutions for settlement, asset issuance, and compliance. This growing adoption strengthens the case for Ethereum as a long-term infrastructure asset rather than a speculative token.
Bitmine’s strategy reflects this broader trend. By aligning its treasury with Ethereum, the firm is effectively betting on the continued integration of blockchain technology into mainstream finance.
Looking Ahead to 2026 and Beyond
Bitmine’s next major milestone will be its annual shareholder meeting, scheduled for January 15, 2026, in Las Vegas. Investors are expected to receive updates on the company’s staking plans, treasury management strategy, and progress toward its 5 percent ETH ownership goal.
Much will depend on the broader market environment in the coming months. If Ethereum prices stabilize and institutional adoption continues, Bitmine’s strategy could be viewed as prescient. If volatility intensifies, the firm may face renewed scrutiny from shareholders and regulators alike.
Conclusion
Bitmine’s rapidly expanding Ethereum treasury highlights a growing divide in the crypto market. While short-term price action remains uncertain, some institutions are moving aggressively to secure long-term positions in digital assets they believe will underpin the future of finance.
By accumulating more than 4 million ETH and targeting ownership of 5 percent of the total supply, Bitmine is making one of the boldest institutional bets on Ethereum to date. Whether this strategy ultimately proves successful will depend on Ethereum’s evolution, regulatory developments, and the firm’s ability to navigate market volatility.
For now, Bitmine’s actions send a clear message: despite near-term caution, institutional conviction in Ethereum remains strong.
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