Inside BitMine’s 3M Ethereum vault: ‘Discount window’ or dead money?

Key Takeaways

How much did BtMine buy during the dip? 

The firm acquired 202,037 ETH, bringing its overall stash to 3.03 million ETH in just three months of accumulation. 

Will the accumulation boost the ETH value? 

Per Tom Lee, the ETH price could hit $10K-$12K by year-end, but Options traders were pessimistic about the targets. 

BitMine Immersion Technologies (NYSE: BMNR), the world’s largest Ethereum [ETH] treasury company, announced that its holdings have hit 3.03 million ETH or 2.5% of the total supply. 

During the recent dip, the firm bought an extra 202,037 ETH. Now, it’s halfway done with the 5% ETH supply target, noted Chairman Tom Lee, hailing the recent discount window. 

“The crypto liquidation over the past few days created a price decline in ETH, which BitMine took advantage of. We are now more than halfway towards our initial pursuit of the “alchemy of 5%.””

Lee added that the recent liquidation cascade made ETH trade at a discount to its fundamentals and future, creating an “advantage to investors, at the expense of traders.”

ETH accumulation in October

The firm now holds over three times more ETH than the second-largest ETH treasury firm, SharpLink Gaming. 

Source: Strategic ETH reserve

Overall, ETH strategy firms held 5.9 million ETH, nearly 5% of the total supply, after adding 500K ETH in the past two weeks.  

Collectively, with ETFs, the entities control 12.7 million ETH, worth over $49 billion per current prices. 

Source: Strategic ETH reserve

The aggressive Spot demand following the recent flash crash could be the perfect setup for a short squeeze for bears betting on muted price action. 

In fact, Lee projected that the ETH price could hit $10K-$12K by year-end, implying a potential 2X or 3X run from current levels. 

Derivatives markets disagree

But Options data showed that traders were very pessimistic about the targets.

On Deribit, Options traders were pricing a 2% chance that $10K level could be hit by year-end. However, the odds for hitting the price range improved for early to mid-2026. 

Source: Deribit

But on the prediction site, Polymarket, bettors were 50/50 about ETH hitting a new ATH by year-end. 

In the short term, however, bulls must defend $3.8K and clear the $4.2K overhead hurdle to advance north. Otherwise, a slip below $3.5K could be feasible if sentiment worsens in the next few days. 

Source: ETH/USDT, TradingView