BitMine Bets Big on Ethereum—Will Wall Street’s AI Blockchain Supercycle Deliver?

BitMine Immersion Technologies, a publicly traded firm, has emerged as a major player in the Ethereum (ETH) ecosystem, holding approximately 2.07 million ETH worth $9 billion as of September 10, 2025. This positions the company as the largest ETH treasury globally and the second-largest crypto treasury overall, trailing behind Michael Saylor’s MicroStrategy (MSTR), which holds $74 billion in Bitcoin (BTC). BitMine’s strategic acquisition of ETH aligns with a broader vision articulated by its chairman, Tom Lee, who advocates for Ethereum’s potential to lead a blockchain-driven financial transformation driven by artificial intelligence and Wall Street’s adoption of decentralized infrastructure. Lee has emphasized the “alchemy of 5%” of Ethereum’s total supply as a long-term macro trade, leveraging the network’s utility in hosting smart contracts and decentralized finance (DeFi) applications.

BitMine’s Ethereum accumulation has been both substantial and strategic. In a recent purchase from September 1–7, 2025, the company added 202,469 ETH for $874.59 million. This expansion in holdings follows a prior acquisition of 153,075 ETH in June for $665.8 million, demonstrating a consistent and aggressive buildup of the asset. The average cost per ETH acquired by BitMine stands at $4,321, with the current market price near $4,300, suggesting a relatively stable cost basis for the company’s treasury. Beyond Ethereum, BitMine also holds 192 BTC and $266 million in additional cash, diversifying its crypto portfolio.

The company’s financials, however, reveal a mixed picture. While the ETH treasury has swelled to $9.2 billion, BitMine’s EBIT margin remains deeply negative at -43.8%, and its gross margin is at 25.1%. These metrics indicate that despite the significant valuation of its crypto holdings, the firm’s core operations remain unprofitable. BitMine has, however, announced a $1 billion stock repurchase program to signal confidence in its equity and reward shareholders. The company’s stock price has surged in recent months, rising from around $31.73 to $52.86 within a few weeks, supported by capital infusions from high-profile investors like ARK Invest and Peter Thiel. This has contributed to increased market liquidity and heightened speculative interest in the stock.

Ethereum’s performance in 2025 has benefited from broader institutional interest and network upgrades, including the transition to proof-of-stake (PoS) in 2022 and subsequent improvements like the Dencun upgrade in March 2024. These developments have enhanced the network’s scalability and reduced gas fees, making it more attractive for both developers and investors. Analysts have cited Ethereum’s potential for growth, particularly through its role in DeFi and tokenized assets. Some institutional forecasts predict ETH reaching $60,000 or higher in the long term, driven by continued adoption and regulatory clarity. Meanwhile, the current market environment has seen ETH stabilize above $4,300, with increased trading volume and mixed derivatives market sentiment.

BitMine’s treasury strategy is not without risks. The firm’s stock price has shown volatility, slipping by 0.3% in premarket trading after a $20 million investment in WLD (World) tokens. This highlights the inherent uncertainty in crypto-related stock movements, where strategic announcements can trigger immediate market reactions. Additionally, regulatory challenges remain a wildcard for both Ethereum and its holders, as jurisdictions like the U.S. and EU continue to refine their approaches to crypto assets. While Ethereum’s proof-of-stake model has improved its environmental profile and reduced energy consumption by nearly 99.9%, concerns around scalability and competition from faster blockchains like Solana (SOL) and Avalanche (AVAX) persist.

Looking ahead, BitMine’s Ethereum-focused strategy hinges on the assumption that Wall Street and AI-driven blockchain infrastructure will converge on Ethereum as the dominant platform. Lee’s thesis suggests that this transition could create a supercycle for the network, driven by increased demand for decentralized applications and financial tools. However, for this vision to materialize, Ethereum must continue to innovate and address technical challenges. The success of BitMine’s $11 billion Ethereum bet ultimately depends on whether Ethereum can sustain its lead in the blockchain ecosystem and outpace both technological and regulatory headwinds.