Why Tom Lee’s BitMine Is Buying Ethereum (ETH) Aggressively Despite Market Fear
BitMine Immersion Technologies, the biggest company holder of Ethereum (ETH), has doubled down on its acquisition of ETH in December, highlighting confidence within the asset.
The renewed shopping for comes regardless of a troublesome setting for Ethereum. Rising trade inflows and ongoing exchange-traded fund (ETF) outflows level to short-term stress throughout the market.
BitMine Scoops Up 138,452 ETH in a Week, Now Controls 3.2% of Supply
According to a latest disclosure, BitMine acquired 138,452 ETH last week, representing a 156% enhance over the earlier 4 weeks. Its whole holdings stand at 3.86 million ETH.
This accounts for over 3.2% of Ethereum’s circulating provide. Furthermore, it places BitMine two-thirds of the best way towards its purpose to manage 5% of ETH’s provide.
Since adopting ETH as a reserve asset, BitMine has continued to make large-scale purchases. Between June 30 and October 5, BitMine gathered 2.83 million ETH. Since October 5, it has added one other 1.03 million ETH to its holdings.
Ethereum’s weak point all through the fourth quarter makes BitMine’s regular accumulation much more notable. Since early October, ETH has shed about 24.8% of its worth, reflecting persistent downward stress.
December has supplied a small break from that trend. The value has climbed greater than 4% for the reason that begin of the month, and with it have climbed BitMine’s ETH purchases.
According to BitMine Chairman Tom Lee, the corporate’s accelerated buying exercise displays its confidence that ETH will doubtless see features within the coming months, supported by a number of key catalysts.
These embrace the Fusaka upgrade, which was activated final week and delivers significant enhancements to Ethereum’s scalability, safety, and total community effectivity. BitMine additionally factors to the broader macro backdrop, with the Federal Reserve ending quantitative tightening and doubtlessly introducing one other rate of interest lower tomorrow.
Together, these developments kind the idea for the corporate’s view that market situations may flip extra supportive for ETH after weeks of volatility.
“We are actually greater than 8 weeks previous the October tenth liquidation shock occasion, a enough size of time to permit crypto to once more commerce on ahead fundamentals,” Lee added.
Market Conditions Point to Near-Term Volatility
Despite this, on-chain data signals caution. CryptoOnchain famous that Ethereum trade netflow to Binance has surged. The trade obtained 162,084 ETH on December 5, 2025. This was the biggest single-day influx of ETH to the trade since May 2023.
Large deposits on exchanges usually counsel impending promote stress, since traders sometimes switch tokens to platforms earlier than liquidating.
“Given the magnitude of this influx, market individuals ought to stay cautious. A provide shock of this dimension, if executed as market orders, may result in heightened volatility or a short-term value correction,” the analyst stated.
Furthermore, Ethereum exchange-traded funds are additionally signaling weakened demand. The ETFs experienced a file $1.4 billion in internet outflows in November 2025, marking the biggest month-to-month withdrawal on file.
The development has continued into December. According to SoSoValue, a further $65.59 million exited ETH-focused ETFs within the first week of the month.
“Historically, ETF movement reversals inform you extra about liquidity stress than about long run fundamentals. When redemptions spike, it’s often an indication that broader danger sentiment is cracking, not that the asset itself broke. If ETF outflows proceed, close to time period value motion stays uneven as liquidity will get drained on the edges,” Milk Road posted.
The ongoing divergence between direct accumulation and ETF redemptions highlights a market cut up, with retail and institutional gamers following diverging methods regarding Ethereum’s outlook.
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