BitMine makes another move: invests $140 million to acquire 48,000 ETH, but Ethereum drops below $2,800 again

On December 17, 2025, when Ethereum’s price hovered around $2,900, blockchain analytics platform Lookonchain detected a notable transaction. The entity marked as associated with well-known analyst Tom Lee, BitMine, purchased 48,049 ETH within just 5 hours, worth approximately $140.8 million.

One day later, on December 18, according to Gate market data, ETH price dropped to $2,799.41, a 24-hour decline of 4.69%. The company continues to steadfastly execute its long-term Ethereum accumulation “alchemy” strategy.

01 Whale Action

On December 17, 2025, the cryptocurrency market observed a significant “whale” activity. According to Lookonchain’s monitoring data, the blockchain intelligence platform tracked the BitMine entity related to Tom Lee, which completed the acquisition of 48,049 ETH in about 5 hours.

The value of this purchase, based on Ethereum’s price at the time, was approximately $141 million. This was not an isolated operation but the latest manifestation of the company’s ongoing accumulation strategy.

After completing this transaction, BitMine’s total Ethereum holdings approached 3.97 million ETH, advancing toward its publicly stated goal — holding 5% of the circulating supply of Ethereum.

02 Strategic Intent

BitMine is not an ordinary investment firm but a Nasdaq-listed “Ethereum treasury company” focused on building a digital asset treasury. Its strategy is similar to MicroStrategy’s approach to Bitcoin but is entirely focused on Ethereum.

The company is led by Tom Lee, co-founder of Fundstrat and a well-known Wall Street analyst. He 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 proactive legislation passed by the U.S. Congress and favorable regulation… These developments strengthen our confidence in the best days ahead for cryptocurrencies.”

BitMine’s ultimate goal is to accumulate 5% of the circulating supply of Ethereum, which they refer to as the “5% alchemy” target. According to Strategic ETH Reserve data, all corporate holdings total about 6.36 million ETH, accounting for 5.26% of the circulating supply.

03 Market Reaction

As of December 18, according to Gate market data, the latest ETH/USDT quote was $2,799.41, down 4.69% in the past 24 hours.

Technical analysis shows that Ethereum’s price faced strong resistance when attempting to recover to the $3,100 level, followed by a decline. Key support is around $2,850; if the price fails to rebound at this level, it could further fall to $2,600.

On-chain data reflects market tension. According to Coinglass, Ethereum experienced $174 million in liquidations over the past 24 hours, with $141.8 million in long positions liquidated.

Contrasting with BitMine’s buying activity is the outflow of institutional funds. On December 17, a total of approximately $582 million exited U.S.-listed spot Bitcoin and Ethereum ETFs.

04 Contrarian Positioning

On the surface, BitMine’s behavior starkly contrasts with mainstream market sentiment. Amid significant ETF outflows, falling prices, and generally cautious market sentiment, their continued buying stands out.

Analysis suggests that this seemingly “contrarian” operation may be based on several core logics:

BitMine is not a short-term trader but a long-term holder of Ethereum. Their goal to accumulate 5% of the circulating supply is a multi-year strategic plan.

The recent pullback from Ethereum’s recent highs offers a more attractive entry point for long-term investors. Despite short-term pressures, Ethereum’s core role as a smart contract platform and DeFi infrastructure remains unchanged.

There is a market view that large corporate treasuries like BitMine’s ongoing accumulation could, in the future, drive a corporate-led Ethereum “super cycle,” fueled by increased staking yields and validator ecosystem participation.

05 Future Outlook

For traders monitoring Ethereum’s price movements, some technical signals are worth noting.

Technical indicators show the Relative Strength Index (RSI) has fallen below neutral levels, while the stochastic oscillator approaches oversold territory. When the stochastic enters oversold, it can sometimes trigger short-term technical rebounds.

Key price levels: Ethereum needs to reclaim $3,100 and break above the 50, 100, and 200-day exponential moving averages to resume an upward trend. On the downside, if it falls below the critical support at $2,850, it could open the door to $2,600 or even $2,380.

The long-term narrative continues to revolve around Ethereum’s role as a core financial infrastructure. As Tom Lee emphasizes, Ethereum is not just a digital currency but the foundational layer for building and operating DeFi, stablecoins, NFTs, on-chain markets, and tokenization of real-world assets.

As Wall Street brings trillions of traditional assets on-chain, Ethereum as the dominant settlement layer could generate substantial demand, driving its value independently of Bitcoin.

Future Outlook

As of December 18, data from Gate exchange shows ETH at $2,799.41. Since BitMine’s last purchase, the price has slightly retraced. On-chain data indicates addresses associated with BitMine continue to accumulate.

The company currently holds nearly 4 million ETH, valued at approximately $112 billion at current prices. This is increasingly close to their goal of holding 5% of the circulating ETH supply.

When BitMine’s stock reacts positively after the accumulation news, it seems the market is gradually understanding the logic behind this contrarian accumulation — not predicting tomorrow’s price, but laying out the blockchain financial infrastructure for the next decade.