On December 17, 2025, as the Ethereum price hovered around $2,900, blockchain analytics platform Lookonchain detected a notable transaction. An entity labeled as BitMine, associated with well-known analyst Tom Lee, purchased 48,049 ETH—worth approximately $140.8 million—in just five hours.
A day later, on December 18, according to Gate market data, the ETH price dropped to $2,799.41, a 24-hour decline of 4.69%. Despite the downturn, the company remained committed to its long-term "alchemy" strategy of accumulating Ethereum.
01 Whale Activity
On December 17, 2025, the crypto market witnessed a significant "whale" move. According to Lookonchain’s tracking, the blockchain intelligence platform identified that the BitMine entity linked to Tom Lee acquired 48,049 ETH in roughly five hours.
Based on the prevailing Ethereum price, this purchase was valued at about $141 million. This was not an isolated event but the latest step in the company’s ongoing accumulation strategy.
Following this transaction, BitMine’s total Ethereum holdings approached 3.97 million ETH, moving closer to its publicly stated goal of holding 5% of Ethereum’s circulating supply.
02 Strategic Intent
BitMine is not a typical investment firm; it’s a Nasdaq-listed "Ethereum treasury company" focused on building a digital asset reserve. Its strategy mirrors MicroStrategy’s approach to Bitcoin, but with a sole focus on Ethereum.
The company is led by Tom Lee, co-founder of Fundstrat and a prominent Wall Street analyst, who has consistently expressed long-term optimism for cryptocurrencies—especially Ethereum.
In a recent statement, Lee emphasized their confidence in the future of digital assets: "2025 has seen many positive developments in digital assets, including supportive legislation passed by the US Congress and favorable regulation… These have strengthened our confidence in the best days ahead for crypto."
BitMine’s ultimate goal is to accumulate 5% of Ethereum’s circulating supply, a target they call the "5% Alchemy" goal. According to Strategic ETH Reserve data, all companies currently hold a combined 6.36 million ETH, accounting for 5.26% of the circulating supply.
03 Market Reaction
As of December 18, Gate market data showed the ETH/USDT pair trading at $2,799.41, down 4.69% in the past 24 hours.
Technical analysis indicates that Ethereum faced strong resistance while attempting to reclaim the $3,100 level, leading to a subsequent price drop. The key support sits near $2,850—if Ethereum fails to rebound here, it could fall further to $2,600.
On-chain data reflects heightened market anxiety. According to Coinglass, Ethereum saw $174 million in liquidations over the past 24 hours, with $141.8 million from long positions.
In sharp contrast to BitMine’s buying, institutional funds have been flowing out. On December 17, US-listed spot Bitcoin and Ethereum ETFs saw a combined net outflow of about $582 million.
04 Contrarian Positioning
On the surface, BitMine’s actions stand in stark contrast to prevailing market sentiment. Amid significant ETF outflows, falling prices, and widespread caution, their continued accumulation is especially notable.
Analysts suggest this seemingly "contrarian" approach may be based on several core rationales:
BitMine is not a short-term trader but a long-term strategic holder of Ethereum. Their aim to accumulate 5% of the circulating supply is a multi-year endeavor.
Ethereum’s price pullback from recent highs offers more attractive entry points for long-term investors. Despite short-term pressures, Ethereum’s central role as a smart contract platform and decentralized finance infrastructure remains unchanged.
There’s a school of thought that sustained buying by large corporate treasuries like BitMine could eventually trigger an enterprise-driven Ethereum "supercycle," fueled by increased staking rewards and validator ecosystem participation.
05 Outlook
For traders watching Ethereum’s price trends, the current market offers some key technical signals.
On the indicator front, the Relative Strength Index has fallen below neutral, while the stochastic oscillator is nearing oversold territory. Downward moves into oversold conditions on the stochastic indicator sometimes spark short-term technical rebounds.
In terms of key levels, Ethereum needs to reclaim $3,100 and break above the 50-day, 100-day, and 200-day exponential moving averages to resume its uptrend. On the downside, a break below the crucial $2,850 support could open the way to $2,600 or even $2,380.
The long-term narrative still centers on Ethereum’s role as the backbone of financial infrastructure. As Tom Lee has emphasized, Ethereum is more than just a digital currency—it’s the foundational layer for building and operating DeFi, stablecoins, NFTs, on-chain markets, and real-world asset tokenization.
As Wall Street moves trillions of dollars in traditional assets on-chain, Ethereum’s position as the leading settlement layer could drive significant demand, supporting its value independently of Bitcoin.
Outlook
As of December 18, Gate Exchange data shows ETH trading at $2,799.41. Since BitMine’s latest purchase, the price has seen a slight pullback. On-chain data indicates that addresses linked to BitMine continue to accumulate.
Currently, the company holds nearly 4 million ETH, valued at around $11.2 billion at current prices. This brings them ever closer to their goal of holding 5% of Ethereum’s circulating supply.
When BitMine’s stock surged following news of the increased holdings, the market appeared to be gradually recognizing the logic behind this contrarian accumulation—not predicting tomorrow’s price, but positioning for the next decade of blockchain financial infrastructure.
