TLDR
- BitMine now holds over 207,000 ETH worth around $794 million.
- The $29 million ETH purchase from Galaxy Digital strengthens BitMine’s strategy.
- Ethereum’s staking ecosystem and PoS model attract strong institutional demand.
- BitMine’s “Alchemy of 5%” plan aims to accumulate 5% of total Ethereum supply.
BitMine, led by financial analyst Tom Lee, has made another major purchase in the Ethereum market. The company acquired 7,660 ETH from Galaxy Digital, valued at $29.28 million. This strategic move is part of BitMine’s ongoing plan to accumulate a substantial portion of Ethereum’s total supply. This large transaction signals growing institutional confidence in Ethereum as the market trends upward in late 2025.
BitMine’s Continued Investment in Ethereum
BitMine has been consistently acquiring Ethereum throughout 2025. This recent transaction adds to the 200,000 ETH the firm purchased in October, worth approximately $800 million. The company now holds over 207,000 ETH, valued around $794 million. This aligns with its long-term vision to accumulate 5% of the total Ethereum supply under its “Alchemy of 5%” plan.
Tom Lee’s strategy centers around buying Ethereum during minor corrections to position BitMine for potential rallies. The company’s interest in Ethereum stems from its belief in the digital asset’s role in the decentralized economy, supporting smart contracts, NFTs, and tokenized assets.
Galaxy Digital’s Role in the Transaction
The purchase took place through Galaxy Digital’s over-the-counter (OTC) trading desk, a platform that allows for large transactions without impacting market prices. The OTC desk provides a discreet way for institutional investors like BitMine to acquire large amounts of assets without causing volatility. According to analysts, the price of $3,823 per ETH, which was the average rate for the recent transaction, reflects the current market value, indicating that BitMine sees Ethereum as undervalued before it potentially rises again.
Galaxy Digital, led by Mike Novogratz, remains a significant player in the crypto industry. Its OTC desk has facilitated many large-scale trades, helping stabilize institutional markets. The firm’s ability to manage large transactions discreetly has made it a preferred partner for companies like BitMine.
Institutional Demand for Ethereum
Ethereum’s increasing demand among institutional investors is supported by its transition to a proof-of-stake (PoS) model, offering lower energy consumption and a growing staking ecosystem. Currently, over 28 million ETH, or about 23% of the total supply, is staked, further decreasing the available liquidity. This reduced supply, along with Ethereum’s scalability improvements, has bolstered investor confidence.
BitMine’s acquisition of ETH fits into the broader trend of institutional participation in the cryptocurrency market. As the crypto market matures, Ethereum’s proof-of-stake mechanism and energy efficiency make it an attractive option for long-term institutional investments.
BitMine’s Strategy and Long-Term Goals
BitMine’s “Alchemy of 5%” strategy aims to accumulate roughly 5% of the total Ethereum supply, which would be around 120 million ETH. This ambitious goal underscores the firm’s belief in Ethereum’s future growth potential. BitMine views Ethereum as foundational to the decentralized economy and believes in its long-term value, especially as the network evolves and expands.
The firm’s investment approach reflects a bullish outlook for Ethereum’s price trajectory. Tom Lee previously projected that Ethereum could reach $10,000 by the end of 2025, a forecast that continues to draw attention from both retail and institutional investors. As BitMine continues to build its Ethereum holdings, it is positioning itself to benefit from Ethereum’s potential price movements in the years ahead.
Ethereum Market Reaction
The Ethereum market has reacted positively to the large-scale institutional purchases. Many traders view BitMine’s acquisition as an indicator of strong institutional interest, which could help stabilize the price around $3,800 per ETH. Some speculate that Ethereum could soon test new highs if institutional demand continues to grow and Ethereum’s staking ecosystem remains strong.
Despite the bullish sentiment, some critics argue that institutional buying could cause short-term volatility, especially as these large players move in and out of the market. However, the general view is that Ethereum remains a strong long-term investment, particularly with increasing adoption and growing institutional involvement.
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