Bitmine's ETH Buying Spree Nears End: Tom Lee Signals Shift, What's Next for Ethereum?
Bitmine, the dominant institutional buyer of ETH, is signaling a slowdown in its aggressive accumulation. With holdings nearing a self-imposed 5% cap, the market faces the potential loss of a key support level. This comes as ETH struggles with outflows and underperformance against BTC.
Bitmine has been the whale in the room for Ethereum, gobbling up over 5.5 million ETH since mid-2025. Now, Tom Lee is hinting that this buying frenzy is winding down. The company's holdings are approaching 4.6% of the total supply, and once they hit 5%, the aggressive buying might just stop. This week's 25,000 ETH acquisition from BitGo was just the latest in a three-day streak that added 125,000 coins, but the party could be over soon.
Ethereum hasn't exactly been a star performer, down 44% year-to-date and miles from its all-time high. Spot ETH ETFs have seen 17 straight days of outflows, bleeding $401 million in May alone. Even JPMorgan analysts are questioning ETH's ability to outperform Bitcoin without significant on-chain improvements and real-world adoption. Lee, however, remains bullish on ETH's fundamentals, but price action tells a different story.
Bitmine's strategy has been Ethereum's answer to Bitcoin's corporate treasury plays, providing a consistent buyer when outflows were rampant. This support fueled a narrative and boosted Bitmine's stock. But the concentration of this support in a single entity raises questions about ETH's long-term stability. If Bitmine steps back without a new institutional buyer stepping up, ETH could face a serious lack of demand.