BitMine adds $358 million in Ethereum, becoming the largest institutional holder

BitMine Immersion Technologies has made one of the largest single-day Ethereum (ETH) purchases this year, acquiring 80,325 ETH worth approximately $358 million. This significant move was executed through multiple transactions, with 14,665 ETH, valued at $64.7 million, sourced from Galaxy Digital’s over-the-counter (OTC) desk in six separate trades. The remaining portion of the purchase came from FalconX, where BitMine acquired over 65,000 ETH, valued at nearly $293 million.

This acquisition marks one of the largest institutional Ethereum buys of 2023, and it highlights BitMine’s strategic ambition to increase its ETH holdings. With this latest addition, the company strengthens its position as a dominant player in the institutional Ethereum market.

BitMine’s Ethereum accumulation strategy

BitMine, led by Tom Lee, has long been vocal about its goal to amass up to 5% of the total ETH supply. The firm considers this target the centerpiece of its Ethereum accumulation strategy. With 1.87 million ETH currently in its reserves, valued at approximately $8.1 billion, BitMine now holds more than 1% of circulating Ethereum.

This substantial holding makes BitMine the largest institutional holder of Ethereum in the world. The company’s bold vision of accumulating 5% of the total supply would significantly enhance its control over the asset, reinforcing its stance as a critical infrastructure partner for the Ethereum network.

Corporate ETH treasuries grow, BitMine leads the way

The rise of corporate ETH treasuries continues to accelerate, with public companies collectively holding over 4.7 million ETH, worth more than $20 billion at current prices. BitMine remains the largest holder among these firms, with notable competitors including SharpLink Gaming and The Ether Machine, each contributing substantial ETH reserves to the growing corporate treasury ecosystem.

BitMine views its ETH holdings as a strategic investment, rather than a speculative bet. ETH treasuries are providing security services for the Ethereum network through native staking, positioning BitMine as a critical digital infrastructure partner for Ethereum. This long-term infrastructure-focused vision is bolstered by BitMine’s recent appointment of David Sharbutt, a former American Tower director, to its board. Sharbutt’s experience in scaling infrastructure-heavy companies signals BitMine’s commitment to methodically growing its ETH strategy.

Ethereum’s price momentum

Following the recent surge in institutional buying, Ethereum’s price has reclaimed the $4,400 mark, recovering slightly after hovering around $4,300 for several days. As of the latest update, ETH is up 1.13% on the day but remains down by about 4% for the week. This price movement is likely driven by the growing institutional demand, including BitMine’s significant purchase.