Ethereum News Today: BitMine Buys Ethereum Downturn, Nears 5% Supply Control

BitMine Immersion Technologies has accelerated its accumulation of Ethereum, increasing its holdings by 77,055 ETH last week to reach a total of 3.313 million coins, representing 2.8% of the total ETH supply, according to Lookonchain. This move brings the company closer to its ambitious target of securing 5% of Ethereum's circulating supply, a strategy that has positioned BitMine as the largest institutional ETH treasury in the world, as detailed in a PR Newswire release. The recent purchase, valued at $13 billion, underscores institutional confidence in Ethereum's long-term potential despite recent market volatility.

The buying spree occurred amid a broader crypto market correction, with ETH trading below $4,000 in early October. While retail investors retreated, BitMine's leadership, guided by veteran analyst Tom Lee, viewed the dip as a strategic opportunity. Blockchain data from Arkham Intelligence revealed that the firm acquired 63,539 ETH worth $250 million from exchanges Kraken and BitGo, with the total weekly addition exceeding 77,000 coins, according to Yahoo Finance. Lee has consistently advocated for Ethereum's "supercycle," projecting a price target of $10,000 to $12,000 by 2025, driven by institutional adoption and macroeconomic trends; this stance is also described in the Yahoo Finance article.

Analysts have echoed optimism about Ethereum's short-term trajectory. Crypto expert Ali Martinez raised his price target to $4,440, citing technical indicators such as a rebound from a descending parallel channel. Meanwhile, trader Merlijn drew parallels between Ethereum's price action and gold's 2024 breakout, suggesting a potential surge to $10,000. These insights align with BitMine's thesis, which emphasizes Ethereum's role in a broader "risk-on" asset class correlated with equity market performance, as noted in the PR Newswire release.

BitMine's aggressive accumulation is part of a larger trend of institutional buying. The firm's total crypto and cash holdings now exceed $14.2 billion, including 192 BTC and an $88 million stake in Eightco Holdings (ORBS), alongside $305 million in unrestricted cash, according to Lookonchain. This financial strength has fueled its stock performance, with shares of BMNR trading at an average daily volume of $1.5 billion—ranking it 46th among U.S. stocks, the PR Newswire release added. Institutional backing from entities like ARK's Cathie Wood and Founders Fund further solidifies its capitalization strategy, per the PR Newswire release.

The company's progress has drawn comparisons to historical financial shifts, with Lee likening the SEC's Project Crypto to the 1971 end of the gold standard—a catalyst for Wall Street's modernization, the PR Newswire release reported. BitMine's strategy, however, faces challenges, including market volatility and regulatory uncertainties. Despite these risks, Lee remains bullish, arguing that Ethereum's fundamentals remain "uncorrelated" to equities but benefit from broader risk-on sentiment, as described in the PR Newswire release.

With 2.8% of the ETH supply under its control, BitMine has surpassed the halfway mark toward its 5% goal. The firm's ability to execute this vision will depend on sustained market stability and regulatory clarity. For now, its aggressive accumulation and strategic partnerships position it as a key player in Ethereum's evolving institutional landscape.