Ethereum-focused treasury expands holdings while analysts warn of shrinking crypto liquidity
BitMine Immersion Technologies has made another major move in the digital asset market, acquiring more than 54,000 ETH worth approximately $173 million last week. The latest purchase lifts the firm’s total Ethereum holdings to nearly 3.6 million ETH, edging close to 3% of the token’s circulating supply.
The company also expanded its cash reserves to $607 million, up significantly from $398 million the previous week, signaling continued confidence in long-term crypto accumulation strategies. Despite the aggressive expansion, BMNR shares slipped 2.6%, touching their lowest level since August.
According to BitMine chairman and Fundstrat co-founder Thomas Lee, the recent weakness across digital asset prices is tied not to a shift in fundamentals, but to tightening liquidity following last month’s market shock.
“When a market maker has a ‘hole’ on their balance sheet, they are seeking to raise capital and are reducing their liquidity functions in the market,” Lee explained. He compared the current environment to a form of crypto-specific quantitative tightening, adding that “in 2022, this QT effect lasted for 6–8 weeks.”
Analysts note that reduced market depth often amplifies volatility, making even routine selloffs appear more severe. The October 10 crash, which rattled several firms involved in liquidity provisioning, may have triggered this phase of contraction.
Still, Lee argues that the cycle is far from over. In his November note to shareholders, he wrote that the current downturn “does not indicate a cycle peak,” suggesting the top may not arrive until 2026 or later.
He also highlighted emerging structural trends that could strengthen Ethereum’s position over time. “Asset tokenization—stocks, bonds, real estate—on the Ethereum blockchain is becoming a major unlock,” he said.
As BitMine continues to scale its treasury and push deeper into Ethereum-based infrastructure, the firm appears committed to long-term accumulation despite short-term market disruptions.
The company’s growing balance sheet signals ongoing institutional conviction at a moment when retail sentiment remains cautious, underscoring the shifting dynamics of crypto market ownership.
Disclaimer
This content is for informational purposes only and does not constitute financial, investment, or legal advice. Cryptocurrency trading involves risk and may result in financial loss.