Ethereum News Today: BitMine's 5% ETH Gambit: Can Ethereum's Supercycle Outpace Market Doubts?

BitMine Immersion Technologies (BMNR) has significantly expanded its Ethereum (ETH) treasury holdings, adding $104 million worth of ETH in the latest round of purchases. The firm now holds over 2.83 million ETH tokens, representing more than 2% of the total Ethereum supply, and has a combined crypto and cash reserve valued at $13.4 billion BitMine Immersion Added USD821M in Ether, Bringing Cash and Crypto Holdings to USD13.4B^[1]. This move solidifies BitMine's position as the largest publicly traded Ethereum treasury firm, trailing only behind Bitcoin-focused corporate treasuries like Strategy Inc. (MSTR) BitMine (BMNR) Stock Soars Nearly 10% as Ethereum Treasury Surpasses $13.4 Billion^[2].

The recent acquisition of 179,251 ETH tokens, valued at approximately $821 million at current prices, brings BitMine's total ETH holdings to a record high. The company's chairman, Thomas Lee, emphasized that Ethereum's role as a foundational infrastructure for Wall Street and artificial intelligence (AI) integration positions it as a "supercycle" investment alongside AI, with long-term price potential driven by its discounted valuation BitMine Tops List as Largest Ethereum Holder with $13.4B Treasury^[5]. BitMine's strategy aims to control 5% of Ethereum's supply, a target it reiterated in public statements and filings Tom Lee’s BitMine Immersion Expands Crypto Treasury Holdings, Now Owns $13.23 Billion Worth of Ethereum^[4].

The firm's aggressive accumulation has coincided with a surge in its stock price. BMNR shares rose nearly 10% to $62.14 in early October 2025, driven by investor confidence in its Ethereum-focused strategy and the growing institutional interest in crypto treasuries BitMine (BMNR) Stock Soars Nearly 10% as Ethereum Treasury Surpasses $13.4 Billion^[2]. The company's treasury includes not only ETH but also 192 Bitcoin (BTC) and a $113 million stake in Eightco Holdings (ORBS), a treasury vehicle focused on Worldcoin (WLD) BitMine Immersion Added USD821M in Ether, Bringing Cash and Crypto Holdings to USD13.4B^[1]. Additionally, BitMine holds $456 million in unencumbered cash, providing liquidity to continue its accumulation efforts BitMine Tops List as Largest Ethereum Holder with $13.4B Treasury^[5].

Market analysts have highlighted the implications of BitMine's actions for Ethereum's price dynamics and market structure. Large institutional holders like BitMine can influence liquidity and price discovery, as their buying activity often prompts market makers to adjust risk limits and spreads Bitmine Redefines ETH Treasury Dominance and Risk^[3]. The firm's holdings also raise questions about supply concentration, with some observers noting that controlling a significant portion of ETH could amplify market volatility during periods of stress Bitmine Redefines ETH Treasury Dominance and Risk^[3].

Despite the bullish outlook, challenges persist. Short-sellers like Kerrisdale Capital have questioned BitMine's fundraising model, which relies on stock issuance to finance ETH purchases. The firm's premium to net asset value (NAV) has dropped from over 2x in August to 1.2x, reflecting growing skepticism about the sustainability of its growth strategy Ethereum, BitMine Just Broke Out — And $5,000 ETH, $130 BMNR Could Be Next^[10]. Additionally, the company's reliance on speculative price targets-such as Tom Lee's projection of ETH reaching $60,000-has drawn criticism for lacking third-party validation .

BitMine's stock has experienced significant volatility, with a 3,000% rally in early July followed by a 27% drop in late July amid concerns over shareholder dilution Ethereum, BitMine Just Broke Out — And $5,000 ETH, $130 BMNR Could Be Next^[10]. While recent gains have partially offset earlier declines, the stock remains sensitive to Ethereum's price movements. For instance, a 5% drop in ETH to $4,455 in September triggered an 8% sell-off in BMNR shares, testing critical support levels . Analysts suggest that Ethereum's ability to maintain above $4,600 will be crucial for BitMine's stock to retest higher price targets .

The broader crypto market has seen a divergence between institutional and retail investor behavior. Institutions, including BitMine, have aggressively accumulated Ethereum as a hedge against macroeconomic risks, while retail investors remain cautious due to volatility and capital constraints ETH’s Market Gap: Institutions Surge, Retail Stays Cautious^[6]. This gap is evident in Ethereum ETF inflows, which reached $21.5 billion in July 2025, driven by institutional demand Experts Suggest Institutional Demand Drives Ethereum Gains While Retail Investors Remain Cautious^[7]. BitMine's dominance in the corporate Ethereum treasury space underscores the growing role of institutional capital in shaping crypto market dynamics BitMine Tops List as Largest Ethereum Holder with $13.4B Treasury^[5].

BitMine's strategy aligns with the trend of publicly traded firms raising capital to build crypto treasuries, a model pioneered by Strategy's Bitcoin accumulation. The firm's focus on Ethereum reflects confidence in the blockchain's utility in decentralized finance (DeFi) and AI infrastructure. However, the success of this strategy hinges on Ethereum's ability to sustain price appreciation and BitMine's capacity to manage liquidity and transparency concerns .