Ethereum News Today: BitMine's 3.63M ETH Hoard: Can Fusaka Upgrade and Fed Moves Offset $3.7B Loss?

BitMine, the Ethereum-focused treasury firm led by Fundstrat's Tom Lee, has intensified its accumulation strategy, acquiring 97,000 ETH in recent weeks as it inches closer to its goal of owning 5% of Ethereum's total supply. The company now holds 3.63 million ETH, valued at approximately $10.39 billion at current prices, representing 3% of the network's circulating supply. This aggressive buying spree, which includes a recent $83 million addition to its treasury, underscores BitMine's conviction in Ethereum's long-term potential amid broader market volatility.

The company's strategy aligns with Ethereum's upcoming Fusaka upgrade, scheduled for late 2025. This network-wide enhancement aims to improve scalability by optimizing data processing for layer-2 transactions, reducing fees, and increasing throughput. Developers describe Fusaka as a critical step in Ethereum's evolution, enabling it to handle higher transaction volumes from decentralized applications and layer-2 solutions. For BitMine, the upgrade could amplify Ethereum's utility as a foundational asset, supporting its thesis of staking yields and tokenized real-world assets.

Meanwhile, Federal Reserve policy shifts are emerging as a key catalyst for crypto markets. With the Fed signaling a likely December 2025 rate cut, investors are flocking to risk assets, including Bitcoin and Ethereum. The move has already driven Bitcoin above $85,000 and spurred a broader "risk-on" sentiment, with cryptocurrencies surging as liquidity expands. Tom Lee, a vocal advocate for Ethereum's "supercycle," attributes the recent dip in ETH prices to "quantitative tightening" effects and sees the downturn as a buying opportunity. He forecasts a rebound to $7,500 by year-end, citing growing institutional adoption and the impending Fusaka upgrade as tailwinds.

BitMine's treasury strategy, however, faces headwinds. The company's stock (BMNR) has plummeted 80% from its July peak, reflecting the broader crypto selloff and equity dilution from its $24.5 billion capital-raising program. While its 3.63 million ETH holdings are valued at $11.2 billion, the position is currently trading at a loss, with unrealized losses estimated at $3.7 billion. Analysts caution that the firm's success hinges on Ethereum's price recovery and the execution of its planned "Made-in-America Validator Network" (MAVAN), a staking infrastructure initiative set for 2026.

The Fed's dovish pivot and Ethereum's technical upgrades are converging to create a favorable environment for institutional investors. Grayscale's recent launch of a spot Dogecoin ETF on NYSE Arca highlights the broader acceptance of crypto assets in traditional markets, further legitimizing Ethereum's role in financialization. As BitMine continues its 5% ownership target, the interplay of regulatory clarity, network upgrades, and monetary policy will likely determine whether its aggressive bet pays off.