Ethereum News Today: BitMine's Ethereum 'Alchemy' Quest: 3% Stake Aims for 5% Threshold

BitMine has solidified its position as one of Ethereum's largest institutional holders by acquiring 3.63 million ETH, a stake representing approximately 3% of the total supply according to reports. The purchase, part of a broader accumulation strategy, underscores the firm's confidence in Ethereum's long-term potential despite ongoing market volatility. The move brings BitMine closer to its stated goal of securing 5% of the network, a threshold dubbed the "Alchemy of 5%" by its research arm, Fundstrat.

The firm's aggressive buying spree, which includes weekly purchases of up to 200,000 ETH during October and November 2025, has positioned it as the second-largest crypto treasury globally, trailing only MicroStrategy's Bitcoin holdings. At an average purchase price of $2,840 per ETH, the position is currently slightly profitable as Ethereum trades above $2,900. BitMine's staking of these holdings via the Made in America Validator Network (MAVAN) is expected to generate yields while stabilizing its balance sheet amid a broader crypto sector grappling with liquidity constraints and ETF outflows.

The timing of BitMine's accumulation aligns with Ethereum's upcoming Fusako upgrade, scheduled for December 3, 2025. The upgrade aims to enhance token value accrual and staking efficiency, potentially bolstering investor confidence. However, market reactions have been mixed. A $44 million 5x leveraged long position opened by whale "1011short" on Hyperliquid highlights cautious optimism, though the trade currently faces an unrealized loss of over $38,000 and a liquidation threshold at $2,326.60. Meanwhile, Ethereum's price action remains fragile, with resistance near $3,000 and support at $2,850 critical for near-term stability.

Institutional caution persists as Ethereum investment vehicles recorded $589 million in net outflows last week, with U.S. spot ETFs accounting for $500.2 million of that total. High-profile projects, including a $1 billion Ethereum Digital Asset Treasury (DAT) initiative by Chinese crypto figures, have been paused due to market weakness. Sharplink Gaming, the second-largest ETH holder, has also drawn attention after moving 5,442 ETH to Galaxy Digital, sparking speculation about portfolio rebalancing or over-the-counter transactions.

BitMine's stated average purchase price of $2,840 has drawn skepticism from analysts, who argue the math does not align with disclosed holdings. Despite this, the firm's chairman, Tom Lee, remains bullish, emphasizing Ethereum's favorable risk/reward profile as the network approaches the Fusako upgrade. The effectiveness of BitMine's staking strategy and the broader market's ability to hold the $2,850 support level will be pivotal in determining whether Ethereum can sustain its tentative recovery.