BitMine is aggressively buying Ethereum! Holding over 3.5 million coins, with an unrealized loss of 1.66 billion, buying more as prices drop.

Ethereum reserve company leader BitMine announced that over the past week, it made another large purchase, acquiring 110,288 ETH, representing a 34% increase from the previous week, successfully raising its total ETH holdings to 3.5 million, accounting for 2.9% of the total Ethereum supply, solidifying its position as the world’s largest Ethereum treasury. However, on-chain data analysts state that BitMine is bearing an unrealized loss of $1.66 billion.

BitMine weekly increase of 34%, total holdings surpass 3.5 million ETH

(Source: PRNewsWire)

According to official announcements, BitMine purchased 110,288 ETH in the past week, marking its most aggressive single-week accumulation recently. At current prices around $3,600 per ETH, this amounts to approximately $397 million invested. Such a large buy-in can significantly impact market supply and demand, especially during periods of lower liquidity, as BitMine’s purchases can effectively absorb selling pressure.

The 34% increase from the previous week indicates that BitMine is accelerating its Ethereum accumulation strategy. Typically, institutional investors adopt a smoothing, periodic buying approach to avoid market impact from large single trades. However, BitMine’s decision to significantly ramp up purchases at this time may be based on several considerations: current prices approaching or below its perceived fair value, upcoming catalysts (such as Ethereum ETF inflows) requiring early positioning, or increased cash flow enabling additional buying power.

Currently, BitMine’s latest crypto asset allocation shows a clear strategic focus. Its core holding of 3,505,723 ETH dominates; 192 BTC are held as a symbolic allocation; Eightco Holdings (Nasdaq: ORBS) provides $60 million in traditional market exposure; and $398 million in unsecured cash (up $9 million from last week) reserves flexibility for future deployments.

This asset allocation reveals BitMine’s core investment thesis: All-in on Ethereum. Similar to MicroStrategy’s extreme Bitcoin bet, BitMine concentrates nearly all resources into a single asset. This strategy carries high risk—if Ethereum’s long-term performance falters, the company faces substantial losses. Conversely, if Ethereum fulfills its vision as a smart contract platform and global settlement layer, BitMine’s returns could be astronomical.

Holding 3.5 million ETH, representing 2.9% of the total supply, is an astonishing concentration. With a total supply of about 120 million ETH, this makes BitMine one of the largest holders after the Ethereum Foundation. Such market influence means its buy and sell decisions can significantly impact ETH prices.

Chairman Tom Lee’s interpretation: Moving toward 5% alchemy goal

BitMine Chairman Tom Lee stated in the announcement: “The recent dip in ETH prices provided an excellent entry opportunity. This week, we increased our holdings by 110,288 ETH, a 34% jump from last week, bringing total holdings to over 3.5 million ETH, or 2.9% of the total ETH supply. We have completed half the journey toward our initial ‘5% Alchemy’ target. Meanwhile, cash reserves increased from $389 million to $398 million, maintaining flexibility for future deployments.”

The “5% Alchemy” is a unique concept proposed by BitMine, referring to the strategic goal of holding 5% of the total ETH supply. Given the current supply of 120 million ETH, this equates to about 6 million ETH. To reach this, BitMine needs to acquire an additional 2.5 million ETH, which at current prices would require roughly $90 billion in additional investment.

Tom Lee’s statement that they have “already completed half the journey” is based on the ratio of 2.9% to 5%, indicating strong confidence in achieving this goal. Publicly announcing such long-term targets provides market clarity on expected buying activity (markets anticipate continued accumulation) and sets internal benchmarks (public commitments are hard to reverse).

The cash reserve increase from $389 million to $398 million suggests that while aggressively buying ETH, the company’s cash holdings have not decreased—in fact, they have grown. This could be due to operational income, new financing, or asset sales (e.g., non-core asset disposals). The increased cash buffer allows continued accumulation even if ETH prices decline further, providing a safety net to avoid forced sales.

The logic behind the $1.66 billion unrealized loss

On-chain data analyst Yu Jin points out that BitMine’s cost basis is approximately $4,020 per ETH, while current ETH prices hover around $3,600, well below this level. With 3.5 million ETH held, BitMine is experiencing an unrealized loss of about $1.66 billion (calculated as [$4,020 - $3,600] × 3,500,000). The recent purchase may have slightly increased this unrealized loss to that figure.

While $1.66 billion in unrealized losses is significant, for BitMine’s investment approach, it’s part of the process rather than the outcome. The company employs a dollar-cost averaging (DCA) strategy—continuously buying at regular intervals to smooth out market volatility. When prices fall, the same amount of capital can buy more tokens, lowering the average cost. Although short-term paper losses exist, if ETH’s long-term trend is upward, this strategy will generate outsized returns.

Historically, similar strategies applied to Bitcoin resulted in over $1 billion in unrealized losses during the 2022 bear market, which later turned into substantial gains as Bitcoin hit new all-time highs in 2024. BitMine appears to be attempting to replicate this success with ETH. The key question: does Ethereum have comparable long-term value appreciation potential as Bitcoin?

(# Three supporting reasons for BitMine’s “buy more as prices fall” approach

Technical confidence: Ethereum as the world’s largest smart contract platform with the richest developer ecosystem and DeFi applications.

Institutional adoption expectations: Ethereum ETF approval and institutional inflows will provide sustained long-term buying support.

Supply-side improvements: Post-ETH 2.0 upgrade, inflation rates have significantly decreased, with periods of deflation, increasing scarcity.

However, the unrealized losses also highlight risks. If ETH prices continue to decline toward $3,000 or lower, the unrealized loss could exceed $3 billion. Under liquidity pressures or shareholder demands, BitMine might be forced to sell at unfavorable prices, realizing actual losses. Maintaining $398 million in cash reserves is thus critical, providing a buffer to continue accumulation without forced liquidation.

From a market impact perspective, BitMine’s ongoing buying provides important support levels for ETH prices. Market participants know that regardless of price dips, BitMine will continue to buy, which constrains downside risk. Many investors view BitMine’s purchase levels as key technical support zones, as they reflect “smart money” valuation levels.

) Market influence of holding 3.5 million ETH

Holding 3.5 million ETH, or 2.9% of the total supply, grants BitMine significant market influence. During periods of lower liquidity, its buying activity alone can push prices higher. More importantly, its long-term holding effectively removes 2.9% of the circulating supply from the market, making prices more sensitive to demand changes.

From another perspective, this concentration means BitMine’s financial health is closely tied to ETH’s price. Every $100 move in ETH affects its holdings’ value by about $350 million. Such extreme concentration incentivizes BitMine to promote ETH ecosystem development and adoption.

If the “5% Alchemy” goal is achieved, with about 6 million ETH holdings, its value at current prices would exceed $216 billion—more than many small to medium-sized countries’ GDPs. This scale would position BitMine as one of the most influential players in the global crypto market, with influence extending beyond investment into governance and protocol development.

In terms of timeline, increasing from 3.5 million to 6 million ETH requires acquiring an additional 2.5 million ETH. At a weekly purchase rate of about 100,000 ETH, this would take roughly 25 weeks, or about 6 months. By mid-2026, BitMine could realize its 5% target. During this period, ETH may experience multiple catalysts: increased ETF inflows, protocol upgrades, and further institutional adoption.