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Ethereum Updates Today: BitMine's Ethereum Transformation: Converting Market Downturns Into Institutional Assets

Ethereum Updates Today: BitMine's Ethereum Transformation: Converting Market Downturns Into Institutional Assets

Bitget-RWA2025/11/10 20:52
By:Bitget-RWA

- Cathie Wood's Ark Invest buys $9M of BitMine shares, boosting its stake to 6.8M shares ($260M), deepening Ethereum exposure amid market volatility. - BitMine, now holding 3.5M ETH ($11.2B), aims to accumulate 5% of Ethereum's supply (6.04M ETH), currently at 2.9% ownership after recent large purchases. - Institutional confidence in Ethereum's long-term potential persists despite 28% price drop from peak, contrasting with Bitcoin's waning appeal and staking advantages.

Cathie Wood's

Invest has further increased its involvement with by acquiring $9 million in shares of , the top Ethereum treasury company, as the cryptocurrency sector faces heightened volatility. This purchase, distributed among Ark's ARKK, , and ARKF ETFs, raises Ark's total holdings in BitMine to more than 6.8 million shares with an estimated value close to $260 million, according to sources . This action highlights the increasing trust institutions are placing in Ethereum's future, even as both and Ethereum have seen price declines recently .

Ethereum Updates Today: BitMine's Ethereum Transformation: Converting Market Downturns Into Institutional Assets image 0
BitMine, under the leadership of Tom Lee, has become the largest publicly listed holder of Ethereum, managing nearly 3.5 million —an amount valued at $11.2 billion at current market rates . The company is targeting ownership of 5% of Ethereum’s total circulating supply, which would equal about 6.04 million ETH. As of November 9, BitMine has surpassed the halfway point, holding 2.9% of the supply after purchasing 110,288 ETH just last week . Lee has described this initiative as "the alchemy of 5%," reflecting a calculated wager on Ethereum’s growing importance as a reserve asset .

Recent market conditions have put BitMine’s approach to the test. In early November, Ethereum’s value dropped below $3,500, marking a 28% decrease from its high, while BitMine’s share price slid 9.8% on Thursday amid a broader slump in crypto stocks

. Despite these setbacks, BitMine has continued to expand its ETH reserves, adding $70 million worth of Ethereum to its treasury on November 4, following a $300 million purchase the week before . This aggressive accumulation has brought BitMine’s total crypto and cash assets to $13.2 billion, which includes $398 million in unrestricted cash .

Ark’s investment in BitMine reflects a broader trend of institutional interest in Ethereum. Unlike Bitcoin, Ethereum’s proof-of-stake system enables investors to earn passive income through staking, making it attractive to those seeking yield

. However, Cathie Wood has recently revised her bullish stance on Bitcoin, lowering her 2030 forecast from $1.5 million to $1.2 million, citing the rapid uptake of stablecoins in developing economies . She remains positive about Ethereum’s outlook, describing it as a potential “super-cycle story for the coming decade” .

BitMine’s rise has also been supported by its strong trading activity. The company’s stock is now the 48th most traded in the U.S., with an average daily volume of $1.6 billion

. This high liquidity has attracted major institutional backers such as Founders Fund, Galaxy Digital, and Kraken, all of whom support BitMine’s mission . BitMine’s approach to corporate treasury management has made it the second-largest public crypto treasury, behind only Michael Saylor’s Strategy, which holds 641,205 BTC (worth $67 billion) .

As BitMine continues to build its ETH reserves, market watchers are looking for signs of a short-term recovery. Analysts believe that if Ethereum rebounds to the $3,400–$3,450 range, BitMine’s shares could approach $39–$40, while a move toward $4,100 for ETH might push the stock into the mid-$40s

. For now, Lee and his team are focused on reaching their 5% goal, betting on Ethereum’s role in the tokenization of traditional assets—a transformation they liken to the end of the gold standard in 1971, which revolutionized Wall Street .

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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