Ethereum News Today: Institutional Alchemy: Ethereum's $13B Treasury Defies Market Volatility

Michael Saylor, the Bitcoin (BTC) bull and co-founder of Strategy Inc. (MSTR), has positioned Wall Street strategist Tom Lee as a pivotal figure in legitimizing Ethereum (ETH) within traditional finance. During his keynote at the BTC in DC event on Sept. 30, Saylor praised Lee as Ethereum's "most influential spokesperson," emphasizing his role in bridging institutional and crypto markets, according to Benzinga. Lee, who chairs BitMine Immersion Technologies Inc. (BMNR), has led the firm to become the largest Ethereum treasury holder, with 3.34 million ETH valued at $13.2 billion. Saylor highlighted that Lee's Wall Street pedigree fosters trust in capital flows, merging institutional credibility with crypto innovation.

BitMine's recent $113 million Ethereum purchase—adding 27,316 ETH—underscores this institutional push. The acquisition, facilitated through Galaxy Digital's over-the-counter desk, aligns with the "Alchemy of 5%" strategy to accumulate 5% of Ethereum's total supply. This follows a $29.28 million ETH buy in early November, bringing BitMine's holdings to 2.8% of the circulating supply. Saylor's Strategy, which pioneered the corporate Bitcoin treasury model, now holds 640,808 BTC with $23.2 billion in unrealized gains, as Saylor announced 10.5% STRC monthly dividends. Both firms exemplify a broader trend of institutional adoption, with Ethereum's smart contract infrastructure attracting investors like Cathie Wood and Peter Thiel.

Despite bullish institutional bets, market volatility persists. October's 8% drop in Bitcoin's price erased $18.8 billion from the crypto treasury sector's market cap, while Ethereum fell 13% for the month. Saylor, however, remains optimistic, recently raising Strategy's STRC preferred stock yield to 10.5% to fund further BTC purchases, according to Investor Empires. He predicts Bitcoin could reach $150,000 by year-end 2025, citing regulatory progress and tokenized real-world assets hitting $2 trillion by 2028.

Lee's Ethereum advocacy faces skepticism from retail traders, with prediction markets pricing a 31% chance of ETH hitting $5,000 by 2025, down from 40% in October. Yet, institutional confidence remains strong: BitMine's OTC buying strategy avoids market impact, while Saylor's treasury model has been replicated by firms like BitMine and Marathon Digital. The Federal Reserve's policy uncertainty and geopolitical tensions, however, pose risks, with Lee warning Bitcoin's volatility could amplify traditional market downturns.

As of Nov. 2, Ethereum traded at $3,918, down 2.71% in 24 hours, while Strategy shares fell 0.17% in after-hours trading. The interplay between institutional accumulation and macroeconomic headwinds will likely define the next phase of crypto's integration into global finance.