Ethereum News Today: BitMine's 'Alchemy of 5%' Strategy: Ethereum's 1971 Moment in Blockchain Finance

BitMine Immersion Technologies (NYSE AMERICAN: BMNR) has reaffirmed its commitment to Ethereum (ETH) following recent criticism of its treasury strategy, with Co-Founder and Chairman Thomas "Tom" Lee defending the company's long-term vision. The firm disclosed total crypto and cash holdings exceeding $10.8 billion as of September 14, 2025, including 2.15 million ETH tokens valued at $4,632 each, marking a significant milestone in its pursuit of acquiring 5% of the total ETH supply. Lee emphasized that institutional adoption of Ethereum is accelerating, with BitMine now holding over 2% of the network's supply and ranking as the largest Ethereum treasury globally and the second-largest crypto treasury behind MicroStrategy Inc.

Lee, a prominent figure in blockchain advocacy, reiterated his conviction in Ethereum's macroeconomic potential. "Ethereum is one of the biggest macro trades over the next 10-15 years," he stated, citing the convergence of Wall Street's migration to blockchain infrastructure and the rise of AI-driven token economies. He argued that large ETH holders benefit disproportionately from this "power law" dynamic, reinforcing BitMine's "alchemy of 5%" strategy. This approach aims to accumulate a strategic 5% stake in Ethereum, positioning the company to capitalize on future demand from institutional investors and technological advancements.

The company's rapid accumulation of ETH has drawn attention to its institutional-grade adoption strategy. BitMine's treasury now includes 192 Bitcoin (BTC) and a $214 million stake in Eightco Holdings, alongside $569 million in unencumbered cash. Institutional support for the firm includes backing from ARK's Cathie Wood, Founders Fund, and Galaxy Digital, reflecting confidence in its ability to scale its Ethereum holdings. Lee highlighted that Ethereum's role as a "truly neutral chain" and its utility in decentralized applications and smart contracts make it a foundational asset for blockchain innovation.

Market dynamics further validate BitMine's strategy. Institutional investors have allocated increasing portions of their portfolios to Ethereum, with over 4% of the total supply now held by entities such as SharpLink Gaming and The Ether Machine. Recent data from Lookonchain and Arkham Intelligence shows BitMine's ETH holdings surged by 1.71% of the total supply in 2025, driven by strategic purchases from Galaxy Digital's over-the-counter desk. Lee noted that the company's treasury growth-now 34.2% of its long-term target-aligns with broader trends of tokenized assets and blockchain-based financial systems.

Criticism of BitMine's strategy has centered on the volatility of crypto markets and the speculative nature of Ethereum. However, Lee countered that Ethereum's structural advantages, including its role in decentralized finance (DeFi) and tokenized assets, provide a hedge against fiat volatility. He also referenced the U.S. Federal Reserve's potential rate cuts and the looming government shutdown as catalysts for increased demand for crypto as an alternative asset. "The transformation of financial services in 2025 is as significant as the 1971 end of the gold standard," Lee stated, drawing parallels to historical market shifts.

BitMine's stock has also gained traction as one of the most actively traded in the U.S., with a 5-day average daily trading volume of $2.0 billion as of September 12. This liquidity, combined with the company's treasury strategy, positions it to benefit from both institutional and retail investor interest in Ethereum. Lee's comments come amid broader institutional adoption, with EY-Parthenon reporting that 60% of surveyed institutions allocate more than 1% of their portfolios to digital assets, driven by Ethereum's scalability and tokenization potential.