Ethereum News Today: BitMine's Ethereum Alchemy: Turning Market Slumps Into Institutional Gold

Cathie Wood's Ark Invest has deepened its commitment to Ethereum by purchasing $9 million worth of shares in BitMine, the leading Ethereum treasury firm, as the crypto market grapples with broader volatility. The investment, spread across Ark's ARKK, ARKW, and ARKF ETFs, brings Ark's total stake in BitMine to over 6.8 million shares valued at nearly $260 million, according to reportsARK Invest Expands Ethereum Bet with Major BitMine Share Purchase. The move underscores growing institutional confidence in Ethereum's long-term potential, even as prices for both Bitcoin and Ethereum have dipped in recent weeksCathie Wood’s Ark Invest buys $9 million of Ethereum-treasury firm BitMine’s shares amid 10% price drop.

BitMine, chaired by Tom Lee, is now the largest publicly traded Ethereum treasury holder, with nearly 3.5 million ETH in its portfolio-equivalent-to $11.2 billion at current pricesCathie Wood’s Ark Invest buys $9 million of Ethereum-treasury firm BitMine’s shares amid 10% price drop. The firm aims to accumulate 5% of Ethereum's circulating supply, a target representing approximately 6.04 million ETH. As of November 9, BitMine has crossed the halfway mark, owning 2.9% of the supply after acquiring 110,288 ETH in the past week aloneBitMine Immersion (BMNR) Announces ETH Holdings Reaching 3.5 Million Tokens and Total Crypto and Cash Holdings of $13.2 Billion. Lee has called the effort "the alchemy of 5%," signaling a strategic bet on Ethereum's evolving role as a reserve assetBitMine Immersion (BMNR) Announces ETH Holdings Reaching 3.5 Million Tokens and Total Crypto and Cash Holdings of $13.2 Billion.

The recent market environment has tested BitMine's strategy. Ethereum's price slid below $3,500 in early November, a 28% drop from its peak, while BitMine's stock fell 9.8% on Thursday amid broader weakness in crypto-related equitiesCathie Wood Bets on ETH Treasury BitMine as Ethereum Treasuries Sink Into Red. Despite the downturn, the firm has continued to buy ETH, adding $70 million worth of the asset to its treasury on November 4, following a $300 million accumulation the previous weekCathie Wood Bets on ETH Treasury BitMine as Ethereum Treasuries Sink Into Red. This aggressive buying spree has pushed BitMine's total crypto and cash holdings to $13.2 billion, including $398 million in unencumbered cashBitMine Immersion (BMNR) Announces ETH Holdings Reaching 3.5 Million Tokens and Total Crypto and Cash Holdings of $13.2 Billion.

Ark's investment in BitMine aligns with a broader shift in institutional sentiment toward Ethereum. Unlike Bitcoin, Ethereum's proof-of-stake model allows for yield generation through staking, a feature that has attracted investors seeking passive returnsTom Lee: 'BitMine Is Halfway To Owning 5% Of Ethereum'. Cathie Wood, however, has tempered her bullishness on Bitcoin, cutting her 2030 price target from $1.5 million to $1.2 million due to the rapid adoption of stablecoins in emerging marketsCathie Wood's Ark Invest Buys BitMine Ethereum Treasury Shares After Cutting Bitcoin Price Target. Meanwhile, she remains optimistic about Ethereum's trajectory, noting its potential to become a "super-cycle story over the next decade"Cathie Wood's Ark Invest Buys $9M Worth of BMNR Stock.

BitMine's ascent has also been fueled by its high trading liquidity. The stock now ranks as the 48th most traded in the U.S., with an average daily trading volume of $1.6 billionBitMine Immersion (BMNR) Announces ETH Holdings Reaching 3.5 Million Tokens and Total Crypto and Cash Holdings of $13.2 Billion. This liquidity has drawn institutional investors, including Founders Fund, Galaxy Digital, and Kraken, which back BitMine's visionCathie Wood’s Ark Invest buys $9 million of Ethereum-treasury firm BitMine’s shares amid 10% price drop. The firm's corporate treasury strategy has positioned it as the second-largest public crypto treasury company, trailing only Michael Saylor's Strategy, which holds 641,205 BTC ($67 billion)BitMine Immersion (BMNR) Announces ETH Holdings Reaching 3.5 Million Tokens and Total Crypto and Cash Holdings of $13.2 Billion.

As BitMine continues its ETH accumulation drive, market observers will be watching for signs of a short-term rebound. Analysts suggest that if Ethereum recovers to $3,400–$3,450, BitMine's stock could test the $39–$40 range, while a push toward $4,100 for ETH could send its shares into the mid-40sTom Lee: 'BitMine Is Halfway To Owning 5% Of Ethereum'. For now, Lee and his team remain focused on executing their 5% target, betting on Ethereum's role in the tokenization of traditional assets-a shift they compare to the 1971 gold standard collapse that reshaped Wall StreetBitMine Immersion (BMNR) Announces ETH Holdings Reaching 3.5 Million Tokens and Total Crypto and Cash Holdings of $13.2 Billion.