BitMine Buys 70 Million in ETH as Firm Aims to Hold Five Percent of Supply

Key Insights:

• BitMine adds $70M in ETH, pushing holdings to 3.726M coins worth over $10.5 billion.
• Company faces 31% drawdown, but continues buying with goal of 5% Ethereum supply ownership.
• Tom Lee shifts Bitcoin ATH forecast to January as institutional crypto interest remains strong.

BitMine has added over $70 million worth of ETH to its growing digital asset treasury. The company continues to accumulate ETH as it works toward its stated goal of owning five percent of the total supply.

Major ETH Purchase Adds to Existing Holdings

According to Lookonchain data, BitMine bought 7,080 ETH on Monday and 16,693 ETH on Saturday. These purchases total approximately $70 million and were made during a period of increased institutional activity in the crypto market.

BitMine’s new purchase aligns with a large investment firm that added 96,800 ETH to its holdings, suggesting continued interest from large-scale investors. BitMine has publicly stated its goal of holding 5% of total supply. With the new purchases, it is now 62% of the way there.

These new acquisitions bring BitMine’s total ETH holdings to 3.726 million, valued at around $10.5 billion based on current market prices. Ethereum is trading at $2,829.63 as of press time, with a 24-hour trading volume of over $25.6 billion.

Firm Continues to Accumulate Despite Unrealized Drawdown

Meanwhile, according to market analyst MerlijnTrader, BitMine has become one of the largest holders, with a reported 3.726 million ETH currently valued at approximately $10.5 billion. The analyst noted that the company’s average acquisition cost is $3,960 per ETH. This places its position at an estimated 31% unrealized drawdown based on the live price of $2,829.63.

Despite the downturn, MerlijnTrader suggested that BitMine is not reducing its position. Instead, the analyst indicated that large holders tend to continue accumulating during price declines. 

“Whales don’t panic at numbers like this. They reload… and they reshape markets,” the analyst stated on social media platform X.

The observation follows BitMine’s recent purchases totaling $70 million, further adding to its already substantial treasury. With these holdings, BitMine is on track toward its goal of owning 5% of the total supply.

Tom Lee Moves Bitcoin Price Target to January

Tom Lee, who is closely associated with BitMine, has shifted his Bitcoin price prediction timeline. In a new CNBC interview, Lee said he now expects Bitcoin to reach a new all-time high by the end of January.

His updated view comes as broader crypto markets experience increased buying from institutions. While ETH is the focus of BitMine’s current activity, market watchers also keep an eye on Bitcoin due to its leadership in digital assets.