Tom Lee-Backed Bitmine Controls 3.6% of Ethereum Supply After Price Crash

In a risky but potentially rewarding play, Ethereum treasury company Bitmine Immersion Technologies (BMNR) has become the largest corporate holder of ETH, now controlling 3.6% of the total supply after aggressively buying the dip.

The firm, backed by Fundstrat’s Tom Lee, purchased an additional 40,613 Ether last week as prices collapsed toward $1,700, bringing Bitmine’s total treasury to over 4.3 million tokens despite sitting on massive unrealized losses from its ETH portfolio, which holds 4.3 million tokens at an average price of $3,826.

Bitmine Ethereum Accumulation Strategy Explained

Led by Chairman Tom Lee, Bitmine pivoted from mining for Bitcoin to an Ethereum-exclusive treasury strategy in mid-2025 with a goal to eventually acquire 5% of the total ETH supply.

The company sees temporary market downturns as acquisition opportunities rather than setbacks, mirroring high-conviction plays seen in broader crypto selloff contexts.

“Bitmine has been steadily buying Ethereum… given the strengthening fundamentals,” Lee stated in a press release, countering concerns about the firm’s $7.8 billion paper loss.

Lee argues that current prices do not reflect Ethereum’s utility as the “future of finance,” positioning the firm for long-term dominance despite the immediate pain on its balance sheet.

What 3.6% Supply Control Means for Ethereum Markets

Bitmine’s total stack now sits at approximately $8.7 billion based on current prices hovering just above $2,000.

On-chain data indicates the firm bought the latest tranche of 40,613 tokens as ETH plunged from $2,300 to lows of $1,700.

Unlike purely speculative holders, Bitmine leverages its position for yield; nearly 2.9 million of its tokens are currently staked, generating an estimated $202 million in annualized rewards at current prices.

While investors continue pouring capital into the sector despite the wipeout, Bitmine’s sheer scale allows it to absorb significant liquidity during panic events.

The company plans to launch MAVAN, a proprietary U.S.-based validator network, to potentially stake its entire holding and maximize yield generation.

How Bitcoin’s Concentration of Ethereum Could Affect ETH Price

The concentration of such a vast amount of Ether in a single corporate entity raises questions about market influence and liquidation risks.

While Lee predicts a V-shaped recovery, the firm remains deeply underwater with an average purchase price of $3,826. This resilience stands in stark contrast to other institutional players; for instance, Trend Research slashed Ether holdings to cover loans during the same market crash.

If Bitmine sustains its position without forced selling, it removes substantial supply from the market, potentially accelerating price appreciation if demand returns.

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