BitMine Immersion Technologies (BMNR), chaired by Tom Lee, has purchased 17,722 ETH valued at approximately $34.74 million, according to data from Lookonchain. This transaction expands the firm's Ethereum treasury and is part of a months-long accumulation program executed during a period of weak market sentiment and ongoing crypto liquidity outflows.
The latest acquisition follows a previously reported, larger step: a roughly $89 million purchase of 45,000 ETH. Together, these actions underscore a consistent strategy of buying into market weakness. BitMine has framed the current pullback as an opportunity to add long-term ETH exposure, expecting that Ethereum's network fundamentals and institutional adoption will prevail over multi-year horizons.
This perspective was reiterated in a February 2 investor update, which disclosed the addition of 41,788 ETH at an average price of $2,317 during the prior week. The update attributed market softness to broader crypto weakness and positioned the purchases as aligned with BitMine's treasury mandate.
Critics, however, warn of concentration risk. Jeff Dorman, CIO at Arca, cautioned that the strategy heightens equity sensitivity to mark-to-market swings. "Their entire business strategy is to accumulate ether, and help build a narrative that ether should go higher," Dorman said, noting that even modest ETH sales could undermine market confidence if the firm needed to de-risk.
On the equity side, this concentration has drawn scrutiny. Weiss Ratings recently downgraded BMNR to a D (Sell), citing overreliance on ETH price performance and the resulting pressure on equity holders during downturns.
The news arrives as Ethereum whales, including BitMine, face significant unrealized losses. CryptoQuant analysis shows the unrealized profit ratio for Ethereum whales has turned negative across all cohorts. Whales with over 100,000 ETH, like BitMine, are at a -0.08 ratio. Analysts note that unlike Bitcoin, ETH has not yet revisited multi-year lows, suggesting "max pain may still be ahead" and potentially forcing distressed whales to capitulate.
At the time of reporting, ETH traded near $1,963, below its 50-day and 200-day moving averages, with a 14-day RSI around 34 indicating oversold conditions. BitMine's total stash is reported to be 4.37 million ETH worth approximately $8.7 billion, acquired at an estimated cost of $15 billion.
