Bitmine Buys More Ether as AI Fears Pressure Crypto

Bitmine Immersion Technologies has purchased another 12,535 Ether (ETH) for its corporate treasury. This ongoing buying campaign brings the company closer to its goal of holding 5% of the total EthereumETH+1.58% supply.

Bitmine Nears Its 5% Ethereum Goal

Bitmine, led by Fundstrat co-founder Tom Lee, now holds 6,041,481 ETH. At recent market prices near $2,400 per token, this stash is worth nearly $14.5 billion.

This latest purchase cost approximately $29.6 million. It closely matches the company's buy of 12,532 ETH from the previous week.

Bitmine currently controls about 4.9% of Ethereum's total circulating supply of 122.1 million tokens. That leaves the company just 63,500 ETH away from its 5% target.

The corporate treasury strategy began on June 30, 2025. Lee has previously indicated that Bitmine plans to halt purchases once it hits the 5% threshold.

Inside Bitmine's $15.1 Billion Treasury Portfolio

Bitmine's combined assets—including crypto, cash, and equity investments—total $15.1 billion. This is down from $16.2 billion a week earlier due to recent crypto market price declines.

Besides its massive Ether holdings, Bitmine holds several other significant investments:

• $582 million in cash and short-term marketable securities
• $180 million stake in Beast Industries
• $74 million investment in Eightco Holdings
• $17.6 million in Bitcoin (BTCBTC+1.13%)

Bitmine also generates regular cash flow by staking its digital assets. Staking involves locking up tokens to support network operations in exchange for rewards.

As of October 18, Bitmine had staked 5,067,309 ETH, which represents roughly 84% of its Ether treasury. This staked ETH is worth about $12 billion and generates an estimated $309 million in annualized rewards.

If Bitmine stakes its entire Ether treasury in the future, its annual staking revenue could reach an estimated $369 million.

Why Crypto Prices Dropped: Tom Lee Points to AI and Macro Fears

Despite Bitmine's buying streak, broader crypto markets have pulled back recently. Over a two-week period, Ether dropped 11.5% while Bitcoin fell 4.4%. At the time of reporting, Bitcoin traded at $81,983 and Ether sat at $2,402.

Tom Lee explained that investor appetite for risky assets contracted across traditional and digital markets.

"The risk appetite of investors contracted in the past few weeks fueled by the worrying combination of AI funding and AI model safety; escalating US-Iran war activity; anxiousness in front of U.S. midterm elections, and generally rising bond yields around the world," Lee stated.

These factors triggered a sell-off in AI technology, semiconductor, and memory stocks. This hit stock exchanges in South Korea and Taiwan especially hard.

Global Market Spillover Impacts Crypto Holdings

Lee noted that tech stock pullbacks directly affect crypto markets due to overlapping investor demographics in key regions.

"Crypto is widely held in the U.S., Korea and Taiwan. So naturally, when investors in those regions de-risk, this creates spillover pressures in crypto markets," Lee added.

He suggested that price drops during periods of strong underlying fundamentals have historically created favorable entry points. However, investors should remember that market conditions can change quickly and prices may remain unpredictable.

How Bitmine Compares to Other Corporate Treasuries

Bitmine holds the largest publicly disclosed Ether reserve in the world. It ranks as the second-largest corporate crypto treasury overall.

It trades places behind Michael Saylor's Strategy, which focuses on Bitcoin. Strategy recently bought an additional 267 BTC for $22 million, bringing its total to 848,517 BTC worth nearly $69.5 billion.

To keep track of current asset valuations and market movements, you can check real-time trading metrics on Bitkub Market.

Past returns of digital assets or past performance are not indicative of future returns of digital assets or future performance.