BitMine Boosts Ethereum Holdings to $1.29B, Now Controls 2.5% of ETH Supply

BitMine Immersion Technologies (BMNR) has quietly become one of the largest single holders of Ethereum.

The company revealed total crypto and cash holdings worth $1.29 billion, including 3.03 million ETH, representing about 2.5% of Ethereum’s total supply, alongside 192 BTC, $104 million in cash, and other assets.

BitMine increased its Ethereum position by 202,037 ETH during the latest market liquidation, buying into the dip as most traders rushed for exits. The firm said it took advantage of the steep price decline to expand its core holdings.

“We acquired 202,037 ETH tokens over the past few days, pushing our holdings to over 3 million, or 2.5% of the supply,” said Tom Lee, a spokesperson for BitMine. “We’re now more than halfway toward our initial pursuit of the alchemy of 5% of ETH.”

The past week’s liquidation cycle left the crypto market reeling.

More than $19 billion in leveraged positions were wiped out in one of the largest selloffs on record. Prices of major assets like Bitcoin and Ethereum tumbled as liquidations cascaded across exchanges.

While retail and leveraged traders fled, BitMine stepped in to accumulate.

ETH fell to around $3,760 during the peak of the crash, its lowest level in weeks. BitMine used the panic to scoop up over 200K ETH, showing a strong conviction in the asset’s long-term value.

The company’s balance sheet now lists 3,032,188 ETH, making it one of the most Ethereum-heavy institutional portfolios in existence.

“Alchemy of 5%”

BitMine’s long-standing goal, internally dubbed the “alchemy of 5%”, is to eventually control 5% of Ethereum’s circulating supply.

With its latest purchase, the firm is now more than halfway there.

At current prices, ETH trades around $4,180, down 4.8% on the week with a market cap of $502 billion, per CoinMarketCap. That means BitMine’s holdings are worth over $12.6 billion in ETH alone, putting the company among the most influential corporate holders in the ecosystem.

Lee said the firm’s strategy remains simple: buy fundamentally strong crypto assets when fear dominates the market.

“The liquidation cycle created an ideal entry window,” Lee added. “We were patient, we waited for panic to peak, and we moved fast when the market cracked.”

The Hacker Panic-Sell

BitMine wasn’t the only notable mover during the chaos.

According to Lookonchain, one large on-chain hacker wallet panic-sold 8,638 ETH, worth about $32.5 million, at an average price of $3,764, locking in a $5.5 million loss.

The same address then bought back 7,816 ETH at $4,159, once the market began to recover, effectively rebuying at a higher price.

The behavior underscored the level of fear that gripped the market during the liquidation cascade. Institutional players like BitMine seized that moment, while some whales and hackers exited in panic.

This isn’t the first time BitMine has made a strategic buy during market weakness.

Earlier this year, the company disclosed incremental ETH purchases during periods of low volatility, building toward its long-term target.

Analysts say BitMine’s aggressive accumulation strategy mirrors the playbook used by early corporate Bitcoin investors such as MicroStrategy and Tesla, who scaled up during downturns.

Unlike those firms, though, BitMine’s focus is Ethereum-centric, positioning it as a rare large-scale institutional bull on ETH rather than BTC.

The company holds only 192 BTC, worth around $13 million, a small fraction of its crypto portfolio.

The Ethereum Thesis

BitMine’s move comes amid renewed confidence in Ethereum’s fundamentals.

Despite market-wide volatility, ETH’s staking ratio, network revenue, and active addresses have remained stable. Transaction volumes on Layer 2 networks like Arbitrum and Base are at all-time highs, sustaining network demand.

At the same time, ETH’s deflationary mechanics, with over 4.2 million ETH burned since EIP-1559, continue to tighten long-term supply.

For institutional investors, those factors make ETH a compelling accumulation target during panic cycles.

From Liquidation Chaos to Opportunity

The October crash was among the largest in history.

Triggered by macro pressures and heavy liquidation across exchanges, the total wiped-out leverage exceeded $19.1 billion, according to Coinglass data.

While most traders were liquidated, BitMine saw opportunity.

Buying when others sold has become the firm’s trademark, a patient accumulation strategy that aligns with its infrastructure-first approach to crypto investing.

The company, known for its immersion-based mining operations, has expanded beyond Bitcoin mining into Ethereum custody and staking infrastructure, betting on the long-term dominance of ETH as a yield-bearing asset.

BitMine Market Reaction

Following the disclosure, BitMine’s stock (BMNR) rose 4.3% in early trading, as investors reacted positively to the company’s bold accumulation during volatility.

Ethereum prices also stabilized above $4,150, showing resilience after the selloff.

Crypto analysts view the move as a signal of underlying institutional confidence.

“BitMine’s accumulation shows there’s smart money buying into weakness,” one trader noted. “Retail panic is usually where big players step in.”

The Road to 5%

If BitMine maintains its current pace, reaching its 5% ETH target may not be far off.

At 3.03 million ETH, the firm already controls one of the largest pools outside exchanges and custodians. To reach 5%, BitMine would need roughly 6.04 million ETH, or double its current stack.

That would require an additional investment of about $25 billion at current prices, a steep climb, but not impossible if accumulation continues during dips.

As volatility remains high, BitMine’s next moves could further influence on-chain dynamics. Its consistent buying pressure adds liquidity during market stress, but also signals to other institutions that Ethereum accumulation remains a viable strategy even amid fear.

Conclusion: Calm in the Chaos

While most traders were forced out of their positions, BitMine Immersion Technologies quietly expanded its Ethereum empire.

The company now holds over 3 million ETH, a 2.5% share of total supply, solidifying its place as one of the largest institutional ETH holders on record.

As Tom Lee put it, BitMine is only halfway toward its “alchemy of 5%.”

If market turmoil continues to provide entry points, they might get there sooner than expected.

Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.

Follow us on Twitter @themerklehash to stay updated with the latest Crypto, NFT, AI, Cybersecurity, and Metaverse news!