BitMine Acquires $130M in Ethereum During Market Downturn

• BitMine bought 28,650 ETH worth $130 million and now holds 1.174 million ETH valued at $5.26 billion. 

• The purchase happened during Ethereum’s price drop, but the company remains bullish on long-term growth. 

• Ethereum is down 3.45% daily but still shows strong weekly gains of 12.22% and monthly gains of nearly 40%.

During recent market volatility, BitMine has purchased an additional 28,650 ETH worth $130 million. The acquisition brings the company’s total Ethereum holdings to 1.174 million ETH, valued at approximately $5.26 billion at current prices.

The purchase occurred through over-the-counter (OTC) transactions before being transferred to BitMine’s WalletSimple storage system. According to Arkham Intelligence data shared by Lookonchain, the transaction demonstrates the company’s continued confidence in Ethereum’s long-term prospects despite short-term price fluctuations.

Strategic Accumulation During Price Decline

Tom Lee, BitMine’s leader, has consistently maintained a bullish stance on cryptocurrency markets. The timing of this substantial purchase aligns with institutional investment strategies that capitalize on temporary market declines.

The acquisition occurred as Ethereum experienced significant selling pressure. ETH trades at $4,394, representing a 3.45% decline over 24 hours. The cryptocurrency reached approximately $4,640 before retreating due to broader market conditions.

On-chain data reveals multiple large ETH transfers into BitMine wallets within a condensed timeframe. This pattern suggests coordinated purchasing activity rather than sporadic accumulation. OTC transactions allow institutional buyers to acquire substantial positions without impacting market liquidity or triggering significant price movements.

Market Performance and Long-Term Outlook

Despite daily losses, Ethereum maintains strong weekly and monthly performance metrics. The cryptocurrency has gained 12.22% over the past seven days and nearly 40% month-over-month.

BitMine’s stock (BMNR) reflects mixed sentiment in traditional markets. The shares trade at $57.81, down 4.37% from the previous session’s close of $60.45. However, BMNR has surged 34.01% over five days and 20.74% monthly, indicating investor confidence in the company’s cryptocurrency strategy.

Ethereum’s historical performance supports institutional accumulation strategies. The cryptocurrency has increased 31.77% year-to-date and 62.94% over six months. Five-year returns exceed 900%, demonstrating substantial gains for long-term holders.

BitMine’s aggressive accumulation reflects broader institutional adoption of digital assets. Large-scale buyers frequently increase positions during market corrections, viewing temporary declines as strategic entry points.

The company’s approach mirrors successful institutional investment patterns observed across traditional asset classes. Using OTC markets, BitMine avoids impacting spot prices while building substantial positions.