BitMine snaps up 7,080 ETH, betting big on an Ethereum rebound
BitMine Immersion Technologies has expanded its already massive Ethereum position, adding another 7,080 ETH as it pushes toward an ambitious goal: controlling 5% of the total ETH supply. The latest purchase comes despite heightened volatility and a sharp drawdown in Ethereum’s price, underscoring the firm’s conviction that the current weakness is a long‑term buying opportunity rather than a reason to step back.
Fresh ETH buys push holdings past 3% of supply
On-chain data from Dec. 2 shows a wallet associated with BitMine purchasing 7,080 ETH via crypto brokerage FalconX, spending roughly $19.8 million at recent prices. This transaction is part of an aggressive accumulation streak that began over the weekend.
In the days leading up to the latest buy, the same wallet had already scooped up 16,693 ETH for about $50.1 million. In total, BitMine acquired 23,773 ETH across three days, with an estimated combined value of around $70 million. These purchases further solidify the company’s position as the largest corporate holder of Ethereum.
According to a recent company statement dated Dec. 1, BitMine now controls more than 3.7 million ETH. That trove represents just over 3% of the cryptocurrency’s circulating supply and places the firm roughly 63% of the way toward its long‑stated objective of owning 5% of all ETH in existence.
Aggressive accumulation throughout November
The latest spree is not an isolated event. Throughout November, BitMine capitalized on price swings to steadily grow its stack, accumulating close to 150,000 ETH across multiple buys. These acquisitions were spread out over periods of heightened volatility and sharp intraday dips, indicating a deliberate strategy of scaling into weakness rather than trying to time an exact bottom.
By layering in entries during sell‑offs, BitMine appears to be executing a dollar‑cost‑averaging approach on an institutional scale. For long‑term players, this method can reduce the impact of short‑term price noise and help build a significant position without being overly dependent on any single entry point.
Ethereum struggles amid risk‑off sentiment
BitMine’s aggressive stance stands in contrast to the broader market mood. Ethereum has been under sustained selling pressure as investors rotate out of risk assets in the face of persistent macroeconomic uncertainty.
Over the past 30 days, ETH has dropped nearly 30%, extending a multi‑week downturn. At the time of the latest BitMine purchase, the token was trading more than 43% below its all‑time high, reached in August. This drawdown has been compounded by steady outflows from Ethereum exchange‑traded funds, which had previously been a major driver of inflows and enthusiasm earlier in the year.
Analysts warn that the market could see further turbulence, noting that liquidity remains thin, sentiment is fragile, and macro catalysts—such as interest rate policies and regulatory shifts—are still weighing heavily on investor psychology.
Why BitMine is buying into weakness
Despite this gloomy backdrop, BitMine Chairman Tom Lee described the company’s recent ETH accumulation as a strategic move designed to front‑run what it sees as the next phase of Ethereum’s growth cycle.
Lee revealed that, over the past week alone, BitMine purchased 96,798 ETH tokens. He framed the acceleration of buying—up 39% from previous weekly levels—as a direct response to what the firm views as an alignment of positive long‑term tailwinds.
Among the key catalysts cited are the upcoming Fusaka upgrade on Ethereum’s roadmap and the prospect of a Federal Reserve rate cut in the not‑too‑distant future. A shift toward lower interest rates would typically ease pressure on risk assets, potentially revitalizing demand for cryptocurrencies. Combined with protocol‑level improvements, BitMine expects this macro and technical mix to form a powerful backdrop for a potential ETH recovery.
According to Lee, these factors collectively justify stepping up the pace of accumulation, even though short‑term volatility may remain elevated.
Positioning for the next phase: staking and infrastructure
BitMine is not merely stockpiling ETH as a speculative bet on price. The firm is increasingly positioning itself as a core infrastructure player in Ethereum’s staking ecosystem, seeking to extract yield and build a business model around network participation.
Central to this strategy is the development of the Made in America Validator Network (MAVAN), BitMine’s upcoming institutional‑grade staking platform. Designed specifically for large organizations that require robust compliance, security, and reliability, MAVAN is pitched as a “best‑in‑class” staking solution targeted at entities that cannot rely on retail‑focused or offshore services.
Lee noted that progress on MAVAN is ongoing, with deployment currently slated for early 2026. By that time, BitMine aims to have a substantially larger ETH base to stake, translating its massive holdings into a steady stream of staking rewards while supporting Ethereum’s proof‑of‑stake consensus.
Why 5% of Ethereum supply matters
BitMine’s long‑term goal of amassing 5% of ETH’s total supply is striking in its scale and implications. A stake of that magnitude not only confers financial exposure but also imbues the holder with significant influence over network security and governance discussions.
From a security standpoint, a large, professionally operated validator set can enhance the stability of the network by providing consistent uptime and robust infrastructure. At the same time, such concentration inevitably raises questions about decentralization, potential central points of failure, and the balance of power within Ethereum’s ecosystem.
For BitMine, controlling 5% of supply would likely cement its role as one of the most important corporate actors in Ethereum, giving the firm both economic leverage and a strong voice in shaping the future of staking standards, client diversity, and infrastructure best practices.
Market implications of corporate ETH accumulation
Large, visible buyers like BitMine can influence market dynamics in several ways. On the one hand, their continued accumulation during downturns may provide a degree of price support, absorbing sell‑side pressure that might otherwise drive ETH lower. Such activity can also serve as a vote of confidence, signaling to other institutional players that long‑term conviction remains intact even in a risk‑off environment.
On the other hand, concentrated ownership can create new risks. Should a major holder unwind a portion of its position—due to regulatory changes, internal policy shifts, or liquidity needs—it could trigger sharp market dislocations. Additionally, the prospect of a few large entities accumulating significant percentages of supply raises ongoing debates about how to preserve decentralization while welcoming institutional capital.
Fusaka upgrade and the ETH narrative
A core pillar of BitMine’s thesis revolves around the Fusaka upgrade, the next major step on Ethereum’s development roadmap. While technical details continue to evolve, upgrades of this caliber typically seek to improve scalability, efficiency, and user experience, often by refining how the network handles data, transactions, and execution.
Historically, major upgrades have acted as narrative catalysts for Ethereum, attracting new developers, applications, and investors who see the improvements as validation of the network’s long‑term viability. By positioning itself ahead of Fusaka, BitMine is effectively betting that enhanced performance and new capabilities will reignite demand for ETH as both a transactional asset and a store of value.
If successful, these changes could feed into renewed growth in decentralized finance, tokenization, and on‑chain business activity—sectors where ETH serves as the primary collateral and fee currency.
The macro backdrop: rates, liquidity, and risk appetite
BitMine’s strategy also hinges on a broader macro call: that the current period of tight monetary policy and cautious risk appetite will not last indefinitely. If the Federal Reserve begins to signal rate cuts, liquidity conditions could normalize, potentially sparking a re‑rating of risk assets, including cryptocurrencies.
Lower yields on traditional instruments often push investors to seek higher returns elsewhere, making digital assets more attractive on a risk‑adjusted basis. For Ethereum in particular, the combination of staking yields, potential fee burns, and growth in on‑chain activity can create a powerful total‑return profile when compared with conventional assets.
BitMine’s accelerated ETH buys suggest the firm is comfortable with enduring near‑term volatility in exchange for outsized upside should this macro thesis play out.
Institutional staking: the next competitive frontier
With MAVAN, BitMine aims to tap into a rapidly expanding opportunity: institutional staking. As more funds, corporations, and asset managers allocate to Ethereum, the demand for compliant, regulated, and auditable staking services is set to grow.
Unlike retail users, large institutions face strict requirements around custody, reporting, security, and jurisdiction. BitMine is betting that many of these players will prefer a domestic, transparent, and enterprise‑grade platform over fragmented or lightly regulated alternatives.
If MAVAN succeeds in capturing a share of this market, BitMine’s massive ETH inventory will be more than a speculative store of value—it will become core productive capital underpinning a high‑margin infrastructure business.
A calculated, long‑term bet amid short‑term pain
In the near term, Ethereum’s price action remains shaky. Persistent ETF outflows, weak broader sentiment, and a lack of immediate bullish catalysts have left ETH vulnerable to further downside and sudden spikes in volatility.
Yet BitMine’s ongoing accumulation, its focus on staking infrastructure, and its commitment to a 5% ownership target paint a clear picture of its strategy: use the current dislocation to build a dominant position before the next cycle fully takes shape.
For traders focused on day‑to‑day swings, the firm’s purchases may not offer much comfort. But for long‑horizon market participants, BitMine’s moves underscore a growing institutional belief that Ethereum, even after sharp corrections, remains a core asset around which major infrastructure, business models, and financial products will continue to be built.