BitMine’s Massive Ethereum Purchase Signals Confidence
Tom Lee-led company BitMine has continued buying Ethereum (ETH), adding over 64,000 ETH to its treasury. This purchase, made during a market drop, has attracted attention from crypto watchers and analysts.
Earlier today, Lookonchain, a blockchain analyst platform, revealed that a BitMine wallet received 22,676 ETH, valued at $68.67 million, from a Bitgo hot wallet. This purchase came after the company made another large acquisition less than a day earlier.
On Friday, December 6, BitMine added 41,946 ETH, worth $130.78 million, from a FalconX hot wallet across two separate transactions. This followed its purchase of another $150 million worth of Ethereum on December 4.
Collectively, these purchases have brought the company’s total Ethereum accumulation to over 64,000 ETH, valued at nearly $199 million. BitMine’s total Ethereum holdings now represent more than 3% of the entire circulating supply.
Ethereum Loses Momentum Amid Market Slowdown
This latest purchase comes amid a broader market slowdown. Ethereum recently lost momentum after a brief resurgence, dropping 3.22% to around $2,900, according to CoinMarketCap data. As of this writing, the cryptocurrency has modestly recovered to $3,029, reflecting ongoing market volatility.
In a recent interview with CNBC, Chairman Tom Lee stated that crypto is struggling because big trading firms are short on cash. He mentioned that the massive market crash on October 10 is one of the main causes of the ongoing market turmoil.
Nevertheless, BitMine is focused on taking advantage of the dip to expand its Ethereum holdings. The U.S.-based mining firm has consistently stated its aim to reach 5% of all ETH. It believes strongly in Ethereum’s future role in settlement systems, tokenized assets, and wider financial services.
At the same time, Chairman Tom Lee has consistently promoted Ethereum as a long-term investment, viewing short-term market declines as opportunities rather than threats.
BitMine Stands Out as Ethereum Buying Slows
BitMine’s significant Ethereum purchases stand out because the rest of the Digital Asset Treasury (DAT) market is slowing down rapidly.
According to Bitwise, Ethereum treasury purchases dropped 81% in November, totaling only 370,000 ETH. This represents a steep fall from the 1.97 million ETH peak seen in August.
Smaller treasuries are feeling the hardest impact. Many are close to running out of funds as market net asset value (mNAV) multiples fall, premiums shrink, and their buying power weakens.
Max Shannon, a senior researcher at Bitwise, explained that treasuries this cycle behaved like the altcoin boom, with interest growing faster than the available funds.
He added that although buying is still higher than Ethereum’s monthly supply, the gap is closing fast, indicating that a pullback has already begun. Currently, BitMine is one of the few companies continuing to buy ETH aggressively.