Breaking: Tom Lee’s Bitmine Buys $130M in ETH as Ethereum Whales Now Control 70% of Supply

Tom Lee’s Bitmine has increased its Ethereum holdings. The company now has 44,463 more ETH tokens added to its total holdings. The cost of the last purchase is approximately $130 million. This action increased the total ETH in possession of Bitmine to 4.11 million tokens. Also, the company currently holds approximately 3.41% of the total supply of Ethereum.

Can Institutional Accumulation Control Ethereum Supply Circulation? 

Bitmine is taking steps to becoming the biggest Ethereum Treasury in the world. The firm affirmed that it has already staked 408,627 ETH. In addition, it has decided to increase its staking action using the MAVAN validator network beginning from 2026.

According to the company, its strategy is about accumulating ETH over the long-term and ensuring optimal yield. The same institutional accumulation strategy was shown by Ethereum treasury firm Trend Research after increasing its ETH holdings.

Tom Lee described Bitmine as the largest fresh money buyer of ETH during recent market weakness. Tom Lee emphasized that year end market conditions created attractive accumulation windows. He noted that seasonal tax loss selling has pressured crypto valuations. He said Bitmine used that period to increase its holdings at scale.

The company says its goal remains the pursuit of what it calls the “alchemy of 5%” That target refers to a long-term objective of owning 5% of the ETH supply.

Can Institutional Accumulation Transform Ethereum Market Dynamics?

Bitmine also provided their updated balance sheet. The firm has an approximate $13.2 billion in crypto and cash reserves. Its treasury consists of 192 Bitcoin and other strategic holdings in addition to its increasing Ethereum holding.

Bitmine claimed that its purchase shows discipline. The same opinion is shared by recent market research, including Fundstrat’s analysis of the prices of ETH and BTC in the first quarter of next year.

The news is announced comes as the Ethereum ownership structure shows changes. According to the on-chain data shown by Milk Road analysts, there have been an increase in the positions of large ETH holders since the end of 2024. Those who hold over 1,000 ETH in their wallets control approximately 70% of the token’s supply.

Will Whale Purchases Support Ethereum Price Stability?

The reduced exposure by retail investors has coincided with the growth of accumulation by whales. This creates an escalating disproportion in the ownership of Ethereum.

Such long-term concentrations will reduce the token’s supply, though they can reduce the effect of a market correction on ETH price. ETH price is at about $2,950 following a bumpy trading day.

Surprisingly, BitMex co-founder Arthur Hayes stated that he intends to sell his Ethereum holdings and buy DeFi assets. According to him, DeFi assets would perform better than Ethereum during high-risk appetite periods.

While sharp swings are high over the short-term, ETH has gained over 22% within the past six months. This indicates that long-term purchase continues to counter any short-term sell-off pressure.