BitMine Buys $173M in Ethereum as Tom Lee Blames Crypto Weakness on Liquidity Crunch

BitMine Immersion Technologies bought $173M in Ethereum and boosted its cash reserves as Tom Lee said a wounded market maker is draining liquidity from crypto and weighing on prices.

BitMine Immersion Technologies (BMNR) made its largest Ethereum purchase in months, buying more than $173 million worth of ether even as crypto markets struggled to find a floor. Shares of BMNR slipped 2.6% on Monday, but the firm leaned into the downturn instead of pulling back.

The company acquired more than 54,000 ETH (ETH-USD) last week and now holds nearly 3.6 million tokens. That stash is approaching 3% of the entire circulating supply, putting BitMine among the largest corporate holders of the asset. It also boosted its cash position to $607 million, up sharply from $398 million the week before.

BitMine Expands Its Ethereum Bet

The firm continues to build its position despite a broader slump in digital assets. Ether recently traded near $3,120 after falling out of last week’s recovery attempt. BitMine also maintains a small amount of Bitcoin and equity exposure to Eightco (ORBS), the Worldcoin-aligned treasury vehicle.

The stock drop on Monday did not stop the firm from scaling its balance sheet strategy. The steady accumulation is meant to strengthen BitMine’s “digital-asset treasury” model during periods when others hesitate.

Tom Lee Flags Liquidity Stress across Crypto

Co-founder and chairman Thomas Lee addressed the recent weakness directly, telling investors the pullback is tied to fading liquidity following the October crash. His explanation has added weight inside the market because he has been one of crypto’s more consistently accurate cycle analysts.

Lee said “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.” He compared that effect to “a kind of ‘quantitative tightening’ (QT) for crypto assets.” He added that “In 2022, this QT effect lasted for 6-8 weeks.”

This backdrop has fueled concerns that crypto’s late-year momentum has stalled. Lee does not believe the cycle has peaked, however. He told shareholders he expects structural forces to stretch the top of the cycle into 2026 or later. The note highlighted tokenization of traditional assets on Ethereum, which he described as “a major unlock” for the financial system.

Key Takeaway

BitMine now carries one of the largest ETH balance sheets in the market, and its latest purchase signals strong conviction despite shaky sentiment. Traders are watching whether liquidity improves heading into December. If Lee is right that this drawdown resembles prior temporary squeezes, BitMine’s latest buy could look well-timed rather than risky.

At the time of writing, Ethereum is sitting at $3,083.40.