Ethereum News Today: BitMine's 'Alchemy of 5%' Turns Ethereum into Wall Street's New Gold Standard

BitMine Immersion Technologies (BMNR) has announced a significant expansion of its Ethereum (ETH) treasury holdings, acquiring over $104 million in ETH in the latest phase of its strategic accumulation. As of October 6, 2025, the company reported a total of 2.83 million ETH tokens in its portfolio, valued at approximately $13.4 billion at a price of $4,535 per ETH. This positions BitMine as the largest institutional holder of Ethereum globally, surpassing competitors in both scale and velocity of accumulation. The company's treasury now ranks as the second-largest crypto treasury, trailing only MicroStrategy's Bitcoin holdings valued at $79 billion.

BitMine's aggressive acquisition strategy is part of its "Alchemy of 5%" initiative, which aims to amass 5% of Ethereum's circulating supply. The firm has already surpassed 2% of the total ETH supply and continues to prioritize Ethereum over Bitcoin, citing its role as the backbone of Wall Street's transition to blockchain technology. Thomas "Tom" Lee, BitMine's chairman and co-founder of Fundstrat, emphasized Ethereum's reliability and 100% uptime as critical advantages in the "supercycle" of AI and crypto investments. "Ethereum's price is a discount to the future," Lee stated, adding that the network's capacity to support AI and financial infrastructure makes it a superior long-term asset.

The firm's treasury strategy has also attracted substantial institutional backing. Key investors include ARK's Cathie Wood, Founders Fund's Peter Thiel (who holds a 9.1% stake), and Galaxy Digital. BitMine's stock has seen robust trading activity, with a 5-day average daily volume of $2.5 billion, ranking it as the 28th most traded stock in the U.S. The company's liquidity and growth in Ethereum holdings have been further bolstered by its recent $365 million registered direct offering, which included warrants for additional shares.

Market analysts have highlighted the implications of BitMine's purchases on Ethereum's supply dynamics. With over 35.6 million ETH already staked (representing 29.4% of the total supply) and corporate treasuries holding another 3.3 million ETH, exchange liquidity is tightening. Paul Barron, a crypto commentator, noted that BitMine's recent acquisition of 319,000 ETH-equivalent to 0.26% of the total supply-could exacerbate this trend, potentially driving prices higher if institutional demand persists. Ethereum's annualized staking yield of 2.89% also provides BitMine with a recurring income stream, differentiating its model from Bitcoin-focused treasuries that rely solely on price appreciation.

BitMine's strategy aligns with broader macroeconomic trends, including the U.S. Senate's GENIUS Act and regulatory developments in stablecoin oversight, which are expected to enhance Ethereum's utility in financial infrastructure. Lee projected Ethereum prices could reach $5,500 in the near term and $10,000–$12,000 by year-end, driven by sustained institutional inflows and a shrinking tradable float. The firm's holdings include not only ETH but also $113 million in Eightco Holdings (ORBS) and $456 million in unencumbered cash, further diversifying its portfolio.

Despite the bullish outlook, risks remain tied to Ethereum's volatility and regulatory uncertainty. Critics, including short-seller Jim Chanos, have warned that crypto treasury companies face a fragile feedback loop of raising capital, buying crypto, and driving up share prices. However, BitMine's dual-income model-combining staking yields with DeFi liquidity-provides a buffer against market downturns. The company's ability to maintain its growth trajectory will depend on its execution of the "Alchemy of 5%" goal and the broader adoption of Ethereum in institutional finance.

Source: [1] BitMine Immersion (BMNR) Announces ETH Holdings Exceeding 2.83 Million Tokens (https://www.morningstar.com/news/pr-newswire/20251006ny90737/bitmine-immersion-bmnr-announces-eth-holdings-exceeding-283-million-tokens-and-total-crypto-and-cash-holdings-of-134-billion) [2] Ethereum (ETH) Treasury News; BitMine (BMNR) Buys $821M Ether (https://www.coindesk.com/business/2025/10/06/bitmine-immersion-added-usd821m-in-ether-bringing-cash-and-crypto-holdings-to-usd13-4b) [4] BitMine Faces $65 Resistance as BMNR Stock Breaks $60 (https://www.fxleaders.com/news/2025/10/06/bitmine-faces-65-resistance-as-bmnr-stock-breaks-60-eth-holdings-swell-to-13-4b) [8] Ethereum Supply Crunch Looms as BitMine Buys 319,000 ETH (https://thecurrencyanalytics.com/altcoins/ethereum-supply-shock-looms-as-bitmine-scoops-up-319000-eth-in-one-week-196637) [9] BitMine's ETH Accumulation Deepens Liquidity Drain Across Exchanges (https://www.ethnews.com/bitmines-eth-accumulation-deepens-liquidity-drain-across-exchanges/)