In the middle of the weekend of falling markets, BitMine invested $827 million to acquire more than 200,000 ETH. The company now holds 2.5% of Ethereum's total supply, confirming its position as the leading institutional player in the asset. In a context of massive liquidations, this targeted movement reflects an assumed strategy of long-term accumulation.
In brief
- BitMine acquired more than 200,000 ETH for $827 million amid the crypto market's collapse.
- The company now holds over 3 million ETH, or approximately 2.5% of the total circulating supply.
- This operation is part of a long-term strategy aimed at reaching 5% of the total Ethereum supply.
- BitMine President Tom Lee talks about buying at a “discount” amid high volatility.
A record operation in a tense market
While the crypto market was experiencing a violent correction, BitMine took advantage of the situation to acquire 202,037 ETH.
“The market fall created a price opportunity that BitMine was able to seize”has declared Tom Lee, President of BitMine and Director of Research at Fundstrat.
This operation, worth $827 million, was carried out at an average price of $4,154 per Ether, according to an official announcement published on X. The company thus exceeds 3 million ETH held, which now represents approximately 2.5% of the total supply of Ethereum.
This maneuver is part of an assumed strategy of aggressive reinforcement during periods of decline. BitMine now has a global reserve of $13.4 billion in its coffers, including:
- $12.9 billion in crypto;
- 192 BTC, supplementing its position in Ethereum;
- $104 million in available liquidity;
- $135 million stake in Nasdaq-listed Eightco Holdings.
Rather than panic, BitMine consolidated its position by capitalizing on temporarily undervalued prices, according to its own reading of the market. The operation reflects strong confidence in the solidity of the Ethereum network in the long term, and could set a precedent for other institutional players.
An assumed strategy and contrasting signals
Behind this spectacular movement, BitMine assumes a long-term strategy. “We are now more than halfway to our initial goal of 5% of the total ETH supply”has announcement Tom Lee.
The company is pursuing what it calls “the alchemy of 5%”an initiative that aims to capture a significant share of the Ethereum network in its strategic assets. According to Lee, “volatility creates deleveraging, which pushes assets to trade at levels well below their fundamentals, or as we say, at a substantial discount to the future”. This positioning contrasts sharply with that of short-term traders, and could well serve as an example for other corporate treasuries still cautious about crypto exposure.
However, if the volumes of the BMNR share demonstrate strong stock market interest, it ranked 22th most traded stock in the United States last Friday, with a five-day average of $3.5 billion.
Indeed, BMNR fell 11% over the week, a decline which coincides with the publication of a short position from Kerrisdale Capital. The fund harshly criticizes BitMine's business model, even calling it “endangered”. This tense climate highlights the divide between the long-term vision defended by BitMine, and the persistent doubts of some traditional investors.
By carrying out a massive buyback in the midst of a market panic, BitMine displays a strategy of conviction, in an often emotional sector. The scale of the maneuver questions as much as it fascinates. Between ambition of partial centralization and long-term bet, BitMine is forcing the hand of competition and could well redefine the contours of the institutional role while Ethereum has just rebounded to $4,500 after the crash.
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