Bitmine Expands Ethereum Holdings as Liquidity Weakness Pressures Crypto Markets
Bitmine has added another 17,242 ETH (≈ $49 million) to its reserves, according to Onchain Lens data (Nov. 21).
The company now holds around 3.5 million ETH, valued at over $10 billion, making it one of the largest corporate Ethereum holders globally.
🔹 Bitmine’s Long-Term ETH Strategy
- Originally a mining firm, Bitmine has evolved into a digital asset treasury business.
- The company intends to accumulate ~5% of Ethereum’s circulating supply over time.
- Purchases are funded by:
- Equity raises
- Company cash reserves
- Staking rewards
- Most acquisitions are routed through major OTC desks such as FalconX and BitGo.
- The recent crypto downturn—ETH dropping from above $4,000 to under $3,000—has been treated as a buying opportunity.
🔹 Tom Lee: Market Maker Balance Sheets Are Still Damaged
Bitmine chairman and Fundstrat co-founder Tom Lee attributed recent crypto weakness to strained market-maker liquidity.
In a Nov. 20 CNBC interview, he explained:
- The Oct. 10 liquidation crash caused about $20 billion in forced liquidations.
- Major market makers suffered significant balance sheet damage.
- Many have been reducing activity and shrinking risk exposure, leading to:
- Lower liquidity
- Persistent downward price pressure across Bitcoin and Ethereum
- This unwind resembles a liquidity event from 2022 that took eight weeks to stabilize.
- We are now six weeks into a similar process, and Lee expects 2–3 more weeks before the pressure eases.
🔹 Market Impact & Outlook
- Bitcoin and Ethereum continue acting as the leading indicators of the liquidity squeeze.
- Once market makers rebuild their balance sheets, Lee expects improved price stability.
- Despite market turbulence, Bitmine remains fully committed to long-term ETH accumulation—highlighting its conviction in Ethereum’s role in:
- DeFi
- Smart contracts
- Tokenization
- Institutional adoption
