BitMine pumps $358M into Ethereum

Tom Lee’s BitMine bought $358 million worth of Ethereum, growing its treasury, securing its place among the largest institutional ETH holders, and driving a new jump in Ethereum’s price.

BitMine received two big ETH transfers from Galaxy Digital and FalconX, adding about 80,000 ETH to its wallets and lifting its total holdings to 1,947,299 ETH worth about $8.69 billion.

BitMine increases Ethereum treasury with fresh $358M purchase

BitMine strengthened its position as the largest holder of ETH among corporate investors after purchasing 14,665 ETH from Galaxy Digital (roughly $65 million) and 65,000 ETH through FalconX (about $293 million). 

Both transfers were routed into new BitMine wallets within 24 hours, and their combined value is $358 million. These new purchases come at a time when the company is aggressively building its treasury by taking advantage of price dips and market opportunities.

Just a week earlier, the company added 153,075 ETH (approximately $668 million), bringing its total inventory to 1,947,299 ETH (about $8.69 billion) combined with the fresh inflows from Galaxy Digital and FalconX. 

With such a massive treasury, BitMine has surpassed other ETH holders by a milestone. The second-largest known corporate holder of Ethereum, SharpLink Gaming, has a total stash less than half the size of BitMine’s, even after buying more than 39,000 ETH in late August and early September. This shows just how much BitMine has outpaced its peers and set an institutional record that is almost impossible to beat.

On-chain analyst Yu Jin said the fact that BitMine received about 80,000 ETH within a single hour on September 4 shows just how massive its resources are. It also reflects the abilities of large liquidity providers like Galaxy Digital and FalconX to facilitate such large transactions without disrupting market prices. 

Ethereum price rises as institutional buying and staking grow

Just 24 hours after BitMine’s $358 million purchase, Ethereum’s price rose by more than two percent, pushing the token further into a monthly rally that now stands at twenty-one percent. Analysts say this stability suggests the token is going strong and preparing for larger moves.

As demand for ETH increases at the institutional level and staking rises, the supply of ETH tightens, favoring higher prices over the longer term. This year’s data shows that public companies and exchange-traded funds have collectively added more than five million ETH to their portfolios (over $23 billion in fresh inflows). 

Staking is also a major factor in reducing the liquid supply of ETH because more investors prefer to lock up their tokens to earn yields and contribute to network security. The U.S. Securities and Exchange Commission’s announcement that liquid staking services will not be treated as securities also boosted confidence in staking. Since then, more than 35.6 million ETH (about 30% of the entire circulating supply) has been locked away.

Tom Lee, a seasoned Wall Street veteran who has consistently argued that Ethereum is undervalued when viewed through the lens of long-term institutional adoption, remains at the center of this accumulation strategy. He frequently compares Ethereum’s current stage to Bitcoin in 2017. During this period, Bitcoin had only begun attracting large financial players but had not yet achieved the level of mainstream recognition it enjoys today. He believes investors who build strong ETH portfolios now will be ready to benefit from far greater gains than Bitcoin once institutional demand skyrockets. 

Tom Lee says these developments are part of a bigger financial transition that could redefine Ethereum’s role in the global economy. He compares BitMine’s accumulation strategy to a “1971 moment” for Ethereum, which refers to the year when the United States unlocked new monetary flexibility and long-term growth by abandoning the gold standard. 

Lee also believes that ETH could receive supportive macroeconomic conditions if the Federal Reserve follows through with interest rate cuts often associated with September policy decisions. Historical trends suggest that such cuts usually boost asset prices, and if the pattern holds, Ethereum could grow just as fast as Bitcoin during its early adoption phase.