BitMine Buys $150M More ETH, Boosting Treasury Above 3% Amid DAT Slowdown
BitMine continued aggressive accumulation of ether (ETH), purchasing roughly $150 million in ETH through two large transactions via BitGo and Kraken. On-chain analytics showed the buys comprised about 18,345 ETH from BitGo and 30,278 ETH from Kraken, adding to recent purchases that included 14,000+ ETH a week earlier and a separate 96,000+ ETH acquisition. The combined activity has pushed BitMine’s ETH holdings past 3% of circulating supply and lifted its treasury value toward roughly $11–12 billion. Tom Lee’s firm has stated a target of reaching 5% of total supply. The buying streak occurs amid a broader slowdown in DAT (Digital Asset Treasury) purchases: Bitwise data indicates November DAT purchases fell to ~370,000 ETH versus an August peak near 1.97 million ETH. Many smaller treasuries faced shrinking mNAVs, narrowed premiums and liquidity stress; some approached insolvency. BitMine’s stock (BMNR) has declined sharply — down over 80% from peak — and the company carries sizable unrealized losses (~$2.8B reported), raising questions about shareholder sentiment and long-term strategy. For traders: the purchase signals continued institutional demand for ETH from a major treasury despite sector-wide cooling, which may support ETH price floors but also highlights concentrated risk tied to DAT balance sheets and equity-market sentiment for crypto firms.
Neutral
The news is neutral overall. BitMine’s large $150M purchase (and prior buys) signals continued institutional demand for ETH, which is price-supportive and could limit downside in the short term. That suggests a bullish element for ETH given concentrated on-chain accumulation by a major treasury. However, several offsetting factors justify a neutral rather than clearly bullish classification: (1) broader DAT buying has collapsed from August highs, reducing overall systemic demand; (2) BitMine’s equity (BMNR) is deeply discounted and the firm carries large unrealized losses, increasing the risk it may need to sell or pause buying if liquidity/credit stress intensifies; (3) concentrated holdings raise tail-risk — large on-chain accumulation by one entity can add volatility if that entity reverses; (4) macro and regulatory conditions affecting crypto equities can weaken sentiment even if on-chain demand persists. Short-term impact: likely modestly supportive for ETH price and may tighten short-term supply; expect price resilience around current levels and occasional spikes on further buys. Long-term impact: depends on whether BitMine reaches its 5% target and on health of other DATs — if other treasuries resume buying, structural demand for ETH increases (bullish); if DAT distress spreads and forces sales, downside risk grows (bearish). Traders should monitor on-chain flows, BitMine disclosures, BMNR equity moves, mNAV readings for DATs, and large withdrawals from exchanges (Kraken/BitGo) as leading indicators.