BitMine purchased nearly 200 million dollars worth of Ethereum this week, reinforcing its position as the largest individual holder of the asset.
The wave of buying comes as ETH trades near its monthly lows, while small wallets continue to sell amidst market weakness.
Despite the pullback, analysts including Tom Lee of Fundstrat maintain a long-term optimistic outlook for Ethereum.
Bitmain expanded its Ethereum holdings this week with a new purchase of nearly $200 million, reinforcing its position as the largest single asset holder.
This step comes with Ethereum trading near its lowest level for the month, following a period of continuous distribution by medium-sized wallets, according to on-chain data.
BitMine's acquisition comes amid a sell-off by small ETH holders.
Lookonchain reported, citing Arkham Intelligence, that Bitmain bought 22,676 $ETH from BitGo on December 6 for about $68.7 million. The transaction indicates an average purchase price of about $3,028 per token.
Notably, the company has already acquired 41,946 Ethereum the previous day from FalconX and BitGo for around $130.8 million.
These deals are based on Bitmain's disclosure last week that it held 3.73 million Ethereum as of November 30. At current prices, the amount is worth over $11 billion.
Bitmain also reported holding 192 Bitcoins, centered around a value of $36 million in Eightco Holdings, and $882 million in cash.
The reserve storage data for Ethereum shows that the company now holds more than the total of its next five peers combined, including SharpLink and the Ethereum Foundation.
Its vault size places Bitmain as the second largest cryptocurrency holder by value among companies, only behind the strategy led by Michael Saylor, the largest institutional Bitcoin holder.
The recent purchases come during a period of weakness $ETH . BeInCrypto data shows that the token has dropped more than 10% over the past month to around $3,027.
The Heatmap for Ethereum accumulation from Alphractal indicates that wallets holding 1 to 10,000 Ethereum sold heavily near the peak of the last cycle. These addresses continue to offload tokens, adding pressure to the market.
Ethereum accumulation trend. Source: Alphractal
However, the larger whales holding more than 10,000 $ETH showed limited activity, with light distribution but no strong accumulation.
Despite the weakness, many analysts still maintain a long-term optimistic outlook.
Tom Lee, CEO of Fundstrat and head of Bitmain, stated that Ethereum could reach $12,000 if Bitcoin rises to $250,000, citing the historical relationship between both assets and increasing demand for real asset tokens.
He added that ETH could rise to $62,000 if its valuation ratio compared to Bitcoin expands over time.
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