Ethereum News Today: BitMine's ETH Grab Challenges Critics as Volatility and Geopolitics Collide

Ethereum (ETH) continued its recovery in early October 2025, rebounding to $4,100 after a flash crash that saw prices dip to $3,500. The price rebound coincided with BitMine Technologies' (BMNR) aggressive acquisition of 202,037 ETH, valued at $828 million at current prices, expanding its holdings to over 3 million ETH-2.5% of the total supply. This move brought the company halfway toward its stated goal of acquiring 5% of all ETH, a strategy aimed at leveraging market volatility to secure discounted assets Ether Treasury News: Bitmine (BMNR) Buys ETH Dip, Holdings^[1].

BitMine's chairman, Thomas Lee, attributed the purchase to the crypto liquidation event that created a "substantial discount to the future," enabling the firm to capitalize on the dip. The firm's treasury now includes $12.9 billion in crypto and cash, with 3.03 million ETH, 192 Bitcoin, and a $135 million equity stake in Eightco Holdings. BitMine has become the largest corporate holder of ETH and the second-largest crypto treasury globally, trailing only Strategy Inc.'s Bitcoin holdings Kerrisdale Capital Opens Short on Ether Treasury Stock BMNR^[4].

The market volatility was triggered by U.S.-China trade tensions, with President Trump announcing a 100% tariff increase on Chinese goods in response to Beijing's rare earth metal export controls. Despite the turbulence, Ethereum's price stabilized above $4,200 by mid-October, with technical analysts noting key resistance levels at $4,270 and $4,500. The 100-day simple moving average at $4,270 acted as a critical support zone, while further gains would require breaking through the $4,500 barrier Short Seller Kerrisdale Targets Tom Lee’s BitMine, Calls Model^[5].

BitMine's stock (BMNR) mirrored the crypto market's volatility, falling 11% on Friday but rebounding 4.3% in pre-market trading. The company's shares have become one of the most actively traded in the U.S., with a five-day average daily volume of $3.5 billion, ranking it 22nd among listed stocks. However, the firm faces scrutiny from short-sellers like Kerrisdale Capital, which criticized its model of issuing shares to buy ETH as "a relic on the verge of extinction" and highlighted growing competition from Ethereum ETFs and other treasury firms .

Institutional Ethereum demand is surging, with corporate treasuries and ETFs collectively holding 12.5 million ETH-10.3% of the network's total supply. This trend mirrors the Bitcoin accumulation strategy pioneered by companies like Strategy Inc., though BitMine's focus on ETH reflects broader institutional confidence in Ethereum's role in decentralized finance (DeFi) and blockchain innovation .