BitMine Buys $1.7B ETH Since Market Crash, Nears 5% Supply Goal

BitMine Immersion Technologies has demonstrated one of the most aggressive digital asset accumulation strategies in recent memory, purchasing 63,538 ETH this week and a staggering 379,271 ETH last week according to data from Arkham Intelligence. These purchases, executed through major exchanges Bitgo and Kraken, follow the company’s established acquisition pattern and bring the total post-crash accumulation to 442,809 ETH valued at approximately $1.74 billion at current prices. The scale of this buying spree becomes even more remarkable when viewed in the context of BitMine’s three-month trajectory—the company has increased its Ethereum holdings from just 163,000 ETH in mid-July to 3.24 million ETH by October 19, representing one of the most rapid corporate digital asset accumulations on record.

This aggressive dip-buying strategy stands in stark contrast to Bitcoin-focused corporate treasuries, which have not replicated similar accumulation patterns during the same period. The company’s consistent weekly purchases have positioned it as a dominant force in the Ethereum market, with current holdings representing approximately 2.6% of the entire Ethereum supply. At its current pace of accumulation, BitMine appears on track to reach its stated goal of controlling 5% of all Ethereum—a target that would give the company unprecedented influence over the network’s supply dynamics and market liquidity.

BitMine Chairman Tom Lee has been vocal about his confidence in the current market positioning, telling CNBC that he believes the crypto market is ‘at the basement and working our way back up.’ This bullish outlook appears to be driving the company’s aggressive acquisition strategy, with Lee emphasizing that the current cycle has significant room for growth. The chairman’s comments reflect a broader sentiment among institutional players that current market conditions present strategic buying opportunities despite short-term price volatility.

Beyond mere accumulation, BitMine is preparing to roll out its own Ethereum staking solution, according to recent statements from Lee. This move would position the company to generate additional yield from its massive ETH holdings while potentially capturing market share in the growing staking services sector. The timing of this announcement suggests BitMine is building a comprehensive Ethereum ecosystem strategy rather than simply treating the asset as a speculative holding, indicating a long-term commitment to the network’s development and utility.

While BitMine continues its aggressive accumulation, Ethereum’s price action tells a more complex story. The asset has struggled to maintain momentum above the critical $4,000 resistance level, with a consistent pattern emerging across trading sessions. According to market observers, Asian trading hours typically drive buying pressure that pushes prices higher, only to be met with sustained selling pressure during US trading hours. This dynamic was evident on Monday when ETH reached an intraday high of $4,080 during early trading but retreated to $3,940 amid US market activity.

Despite the short-term price challenges, technical analysts see potential for significant movement. Analyst ‘Merlijn the Trader’ observed that Ethereum’s weekly chart is ‘loading a monster move’ with a double retest of the exponential moving average—a pattern that previously preceded a 70% price surge. This technical setup, combined with the fundamental pressure from aggressive accumulators like BitMine, creates a compelling backdrop for potential price appreciation once the current resistance levels are decisively broken.

The impact of digital asset treasury companies like BitMine is becoming increasingly significant in crypto market dynamics, according to institutional research. David Duong, head of research at Coinbase Institutional, recently highlighted this trend in a research paper, noting that ‘Looking at the supply/demand picture, it’s hard to overstate the impact that digital asset treasury companies have had on markets this year.’ This assessment underscores how corporate accumulation strategies are reshaping market structure and supply availability.

Coinbase itself has expressed bullishness about fourth-quarter momentum for crypto markets, pointing to the growing influence of digital asset treasuries as a key factor. The concentration of Ethereum supply in the hands of strategic accumulators like BitMine creates both opportunities and challenges for market participants—while it may provide price support during downturns, it also raises questions about market concentration and the potential for single entities to exert outsized influence over asset dynamics. As BitMine continues its march toward 5% of Ethereum’s total supply, the broader market will be watching closely to see how this unprecedented accumulation strategy unfolds.