Bitmine big dump swept up 128,000 ETH, buy the dip Ethereum 480 million dollars

Tom Lee's Bitmine bought 128,718 ETH during Ethereum's big dump of 20%, worth 480 million USD, bringing the total holdings to 2.96 million. This wave of institutional investment in Ethereum occurred as Trump's tariffs triggered a 2 billion USD derivation get liquidated, with the purchase price as low as 3,728 USD.

Bitmine Epic Buy the Dips: 128,000 Ethereum Institutional Investment

(Source: Arkham)

The historic cryptocurrency market crash in October forced the leveraged trading market to undergo massive liquidations, with prices falling, creating an excellent opportunity for bold institutional investors to buy Ethereum (/buy-ethereum-eth). The most notable participant was Bitmine Immersion Technologies, led by Tom Lee. This Ethereum financial giant, steered by the Chief Information Officer of Fundstrat Capital, immediately increased its holdings by 128,718 ETH after the big dump, worth approximately 480 million USD, rapidly expanding its already large ETH reserves.

According to real-time data shared by the on-chain analysis company Lookonchain, Bitmine reacted extremely quickly after the big dump. It used six newly launched wallets that may be related to Bitmine to withdraw over 128,000 ETH from exchanges. These transfers have been confirmed by blockchain explorers, demonstrating a typical pattern of institutional investment in Ethereum making large withdrawals and strategic positioning during market crash windows. Such large-scale operations can only be executed by well-funded and quick-decision institutional investors.

Bitmine holds a particularly unique position in the realm of institutional investment in Ethereum. Prior to the latest round of accumulation, it had amassed over 2.83 million ETH. With this additional 128,000 ETH, its holdings have surged to approximately 2.96 million ETH, accounting for nearly 2.5% of the total supply of Ethereum. This ratio is unparalleled among publicly listed companies; Bitmine has the largest ETH reserves of any listed company, second only to Strategy's Bitcoin holdings in the entire cryptocurrency space. This whale-level institutional investment in Ethereum means that any actions taken by Bitmine have a significant impact on the market.

The trading log shows that Bitmine's institutional investment in Ethereum focused on the most severe big dump period, with some ETH being purchased at a price as low as $3,728. This price was at the level where market panic peaked on Friday, when Bitcoin fell below $100,000 and Ethereum plummeted 20% from its high of $4,400. At a time when the vast majority of investors were panic selling, Bitmine chose to buy heavily, demonstrating a typical institutional investor style: being greedy when others are fearful and taking advantage of irrational market moments to build long-term holdings.

The Firm Belief in Institutional Investment in Ethereum: Increasing Positions Despite a Paper Loss of 2 Billion

Bitmine's Ethereum institutional investment strategy is facing tremendous paper pressure. Although the price has rebounded from Friday's low, Bitmine's total holdings are still facing an unrealized floating loss of over $2 billion. This figure is astronomical for any investor and is a heavy burden even for well-funded institutions. However, Bitmine has not only refrained from reducing positions to stop losses but has instead significantly increased its holdings during the big dump, conveying a strong signal: institutional investors are confident in the long-term value and network fundamentals of Ethereum.

As KOL and investor Ted Pillows commented: "Institutions are not afraid to buy Ethereum." This statement succinctly summarizes the mindset of institutional investment in Ethereum. Unlike retail investors who are easily influenced by short-term price fluctuations and panic-selling, institutional investors typically have a longer investment horizon and stronger psychological resilience. They focus on the intrinsic value of the asset and long-term trends, rather than short-term price noise. For Bitmine, the fundamentals of Ethereum have not changed: it remains the largest smart contract platform with the richest DeFi ecosystem, and the transition to a PoS mechanism after the merge has made it more environmentally friendly and deflationary.

Bitmine's Ethereum institutional investment strategy aims for scalability and long-term holdings. The company is always committed to adopting an active "Buy the Dips" strategy during times of increased market volatility, and this operation is just the latest embodiment of its consistent strategy. Recent large purchases have also facilitated staking arrangements, with Bitmine utilizing validation nodes and liquidity protocols to earn annualized staking returns based on price exposure. This strategy effectively reduces the actual cost of holdings, as staking returns can partially offset losses from price declines.

The PoS staking mechanism of Ethereum provides a passive income source for large holders. Currently, the Ethereum staking APR (Annual Percentage Rate) is about 3-4%. For Bitmine's holdings of 2.96 million ETH, this means an annual staking yield of approximately 88,000 to 118,000 ETH. At current prices, this translates to a passive income of about 360 to 490 million USD per year. This cash flow provides Bitmine with a continuous income, allowing it to withstand short-term price fluctuations without being forced to sell at unfavorable times.

From the perspective of market microstructure, as leveraged sellers are eliminated during the crash, Bitmine and similar Ethereum institutional investors reposition themselves to gain long-term returns, which may support price stability. Leveraged liquidations are often one of the signals that a market bottom is forming, as it clears out weak holdings and reduces the risk of further declines. When steadfast long-term holders step in at low levels, the supply and demand structure of the market undergoes favorable changes, laying the foundation for subsequent rebounds.

The market has rebounded: Ethereum returns to 4,168 USD

Bitmine's judgment seems to have been validated quickly. On October 13, the price of Ethereum has rebounded to $4,168, which is more than an 11% bounce from Friday's low of $3,728. This rapid V-shaped reversal demonstrates the effectiveness of the institutional investment strategy of buying the dips in Ethereum. For Bitmine, which purchased around $3,728, this has resulted in considerable paper profits in just a few days, partially offsetting the overall losses of its large holdings.

This rebound also verifies an important market rule: extreme panic often creates the best buying opportunities. When Trump's tariff threats triggered a market crash, the Fear and Greed Index fell to an extreme panic level of 27, and this extreme sentiment usually marks the end of sell-offs. Ethereum institutional investors seized this opportunity to build positions when the market was at its most pessimistic, subsequently gaining quick returns as sentiment improved and the TACO trading effect took hold.

However, it is still uncertain whether the market has completely shaken off the downside risks. Trump's policies may fluctuate at any time, and the US-China trade tensions have not really eased. Bitcoin is still struggling around $115,000 and has failed to regain $120,000. For Ethereum's price to achieve sustainable growth, it may require more time and more confirmation signals. Although Bitmine's institutional investment in Ethereum appears successful in the short term, its true value will be reflected in long-term holdings over the coming months or even years.

For ordinary investors, the operations of Bitmine provide valuable insights. First, the behavior of institutional investors can often serve as a contrarian indicator of market sentiment; when they buy heavily in a panic, it may signal that the bottom is near. Second, buying the dips requires immense courage and financial strength. Ordinary investors can learn this strategy, but they must act within their means, participating only with idle funds and preparing mentally for the possibility of further declines. Third, holding long-term and staking returns can reduce holdings costs, which is an effective method to combat short-term volatility.

The increase in institutional investment in Ethereum is a positive signal for the entire market. It indicates that professional institutional investors with ample research resources are optimistic about the long-term prospects of Ethereum. As more institutions hold ETH, market stability may improve, as institutions typically do not panic sell like retail investors. Institutional buying pressure from entities like Bitmine also provides strong support for prices, giving market participants more confidence that Ethereum will not experience an uncontrollable big dump.