Bitmine significantly increases ETH holdings to 4.42 million coins, indicating institutional confidence in Ethereum's future prospects

In the current highly volatile cryptocurrency market, an institution called “Whale” is attracting widespread attention with its contrarian moves. Bitmine Immersion Technologies not only did not retreat during the recent market downturn but also accelerated its accumulation of Ethereum (ETH).

At the same time, well-known analyst Tom Lee’s public support and on-chain data signaling a bottom together form the three main pillars of market confidence in Ethereum’s future. This article will analyze the deeper logic behind these institutional behaviors, based on the latest data from the Gate platform on February 24.

Contrarian Bet: The Strategic Resolve Behind Bitmine’s Increased Holdings

Facing selling pressure caused by macro uncertainties, Bitmine once again demonstrated the boldness of a “whale.” According to the latest announcement, as of February 22, Bitmine’s total ETH holdings have risen to 4,422,659 coins. Just last week, the company decisively added 51,162 ETH, the largest weekly increase since December last year.

This accumulation occurred during a sensitive period when Ethereum’s price was under pressure. Although current ETH prices are significantly below their average purchase cost of $3,779, resulting in unrealized losses exceeding $8.2 billion, Bitmine remained undeterred. Chairman Tom Lee explicitly stated that the market is currently in a “mini crypto winter,” and Bitmine’s strategy is to steadily execute its ETH reserve plan. He views the current price pullback as an attractive buying opportunity and emphasizes that ETH’s market price is far from reflecting its actual value as future financial infrastructure.

This “buy-the-dip” approach is similar to MicroStrategy’s strategy with Bitcoin, showing the institution’s long-term commitment to high-quality crypto assets. Currently, Bitmine’s holdings account for 3.66% of the total ETH supply, maintaining its position as the largest Ethereum corporate reserve globally.

Strong Fundamentals: Staking Yields and Ecosystem Development

Bitmine’s confidence is not only based on price judgment but also on the strong cash flow generated by the Ethereum network itself. Data shows that about 69% of Bitmine’s holdings (approximately 3.04 million ETH) are staked, generating annual staking rewards of up to $171 million. Its proprietary staking infrastructure, MAVAN, is expected to go live in the first quarter of 2026, with full staking potentially yielding an annualized return of about $249 million.

Tom Lee believes that, besides staking income, Ethereum’s growth potential in the RWA tokenization sector is also significant. Last year’s GENIUS legislation solidified the status of stablecoins, further enhancing Ethereum’s importance as a core blockchain. These fundamental factors’ continuous strengthening is the core driver behind Bitmine’s disregard for short-term market fluctuations and its ongoing ETH accumulation.

Data Confirmation: Fundstrat Model Reveals Bottom Range

Bitmine’s contrarian bottom-fishing is not an isolated event; the latest report from research firm Fundstrat also provides a strong boost to market confidence. According to analyst Sean Farrell’s on-chain cost basis model, ETH’s current trading price is about 22% below the average investor cost. This deviation is very close to the reference values of 21% at the 2025 bear market bottom and 39% at the 2022 lows, indicating that the chip structure is entering a historic bottom zone.

The model further indicates that ETH’s implied bottom range is between $1,770 and $1,367, with a historical 87% success rate for holding ETH for 12 months. As of February 24, data from Gate shows ETH prices oscillating within this range. Although short-term momentum is still dominated by sellers, indicators like RSI are approaching oversold levels, suggesting conditions ripe for a technical rebound.

Market Dynamics: Capital Outflows and Key Price Levels

Despite frequent buy signals from institutions, market sentiment remains fragile. According to Gate Ventures’ weekly review, ETH spot ETF net outflows last week reached $123.37 million, and the market fear-and-greed index even dropped to 5, entering “extreme fear.” This contrasts sharply with the firm buying by institutions like Bitmine, highlighting a significant divergence between retail and institutional investors.

From a technical perspective, Ethereum is at a critical crossroads. On the daily chart, ETH is hovering around $1,900. Gate analysts point out that key support levels are at $1,740 to $1,820. If this support fails, it could open the door to $1,562 or even $1,404. Conversely, to reverse the trend upward, ETH must decisively reclaim resistance levels at $2,100 and $2,746.

Conclusion

Bitmine’s substantial accumulation and Tom Lee’s endorsement are more than isolated events—they represent a reaffirmation of smart money’s confidence in Ethereum’s long-term value. Fundstrat’s on-chain data models provide historical bottom references, while Bitmine’s real capital injection signifies substantial industry capital betting on the future.

Of course, institutional actions do not guarantee an immediate market reversal. Short-term ETF outflows and technical short structures still need time to play out. For ordinary investors, rather than obsessing over precise bottom-timing, it’s better to focus on these long-term holders’ cost ranges and the fundamental developments of the Ethereum network.

On the Gate trading platform, we observe increasing interest among users in long-term ETH allocation. Whether through spot dollar-cost averaging or participating in ETH staking for stable yields, these are effective strategies to navigate current market volatility. Whether Bitmine’s contrarian gamble will ultimately pay off remains to be seen, but its unwavering confidence in Ethereum’s future undoubtedly lights a beacon in today’s foggy market.