BitMine Approaches 5% Ethereum Ownership Amid Strong Market Performance

BitMine is nearing its goal of holding 5% of Ethereum's circulating supply, having already accumulated approximately 4.9%. Last week alone, the company added 15,112 ETH to its treasury, bringing its total holdings to around 6.016 million tokens. At current market prices, this stash is valued at about $16.16 billion, representing a significant portion of the Ethereum ecosystem.

This persistent buying spree contrasts with recent trends in US spot Ethereum ETFs, which saw $138 million in net outflows last week. While BitMine continues to expand its direct holdings, ETF investors have been reducing their exposure, highlighting a divergence in demand across different investment channels. Ethereum itself has seen a strong performance, gaining over 70% in the third quarter, its best quarterly performance since early 2021.

Despite the strong returns, market liquidity for Ethereum has thinned, with median liquidity now around 35%, 45% of Bitcoin's. This lower liquidity could amplify price movements, making Ethereum prone to sharp swings. Current technical levels suggest that reclaiming $2,790 could pave the way for further gains, potentially reaching $2,880 and $3,066. However, a failure to break this resistance could trigger a slide toward $2,550 or even $2,432.

BitMine Chairman Thomas Lee noted Ethereum's outperformance, stating that it surpassed the S&P 500 by 6,832 basis points during the quarter. The company also maintains a substantial staking position, with approximately 5.067 million ETH staked, generating an estimated annualized revenue of $363 million. Alongside its Ethereum holdings, BitMine owns 214 BTC, stakes in Beast Industries and Eightco Holdings, and holds $643 million in cash and marketable securities.