Tom Lee’s Bitmine Scoops Up 3.4% of Ethereum, Triggering a Supply Squeeze

Key Insights

• Bitmine Immersion now controls 3.4% of Ethereum, significantly reducing available exchange supply.

• Institutional Ethereum accumulation continues as ETFs and corporations lock up large ETH volumes.

• Shrinking exchange balances increase Ethereum’s sensitivity to future demand shifts.

Bitmine Immersion has expanded its Ethereum holdings, securing 3.4% of circulating supply and reshaping market availability. This accumulation has reduced exchange balances, while Ethereum remains the keyword shaping liquidity, pricing, and institutional strategy. Ethereum supply conditions have tightened, even as price movements show short-term weakness amid structural demand.

Ethereum Holdings Expand Under Bitmine Strategy

Bitmine Immersion controls more than 4.167 million Ethereum, giving the firm one of the largest global positions. Ethereum accumulation through long-term holding has removed substantial supply from active trading venues. This strategy supports a tighter Ethereum market, while reinforcing Bitmine’s role within the broader ecosystem.

Tom Lee guides Bitmine’s approach, emphasizing steady acquisition rather than rapid trading activity. As a result, Ethereum has shifted from exchanges into long-term custody, reducing available liquidity. This movement reflects confidence in Ethereum’s network utility and future economic role.

      source: https://x.com/MartiniGuyYT/status/2013150382932000957?s=20

Bitmine continues building toward nearly five percent ownership of Ethereum circulating supply. Ethereum concentration among large holders has increased, while retail exchange balances decline. This background shows how Ethereum supply dynamics now depend heavily on institutional behavior.

Institutional Ethereum Accumulation Broadens

Other firms have also accumulated Ethereum, adding pressure to already declining exchange balances. For instance, Sharplink holds approximately 864,000 Ethereum, representing about 0.7% of total supply. Therefore, Ethereum ownership has gradually shifted toward corporate balance sheets.

Spot Ethereum exchange traded funds have absorbed billions since their launch period. Consequently, Ethereum locked within fund structures has reduced circulating liquidity further. This process has intensified competition for available Ethereum units across markets.

Together, institutions and funds have restricted Ethereum availability without increasing immediate selling pressure. Ethereum supply conditions have tightened, even during periods of price consolidation. This background explains why Ethereum market depth now appears thinner across major exchanges.

Ethereum Exchange Supply and Market Structure

Data shows Ethereum exchange balances have dropped near 16.3M units. Thus, Ethereum trading liquidity has narrowed, increasing sensitivity to demand changes. Even small shifts can now influence Ethereum pricing more strongly than before.

Despite accumulation trends, Ethereum price recently slipped below the $3,200 level. However, Ethereum continues trading within a broader structure shaped by reduced supply availability. This price action reflects short-term pressure rather than a reversal of accumulation trends.

Technical patterns suggest Ethereum may respond sharply once demand strengthens. Ethereum’s reduced exchange presence could amplify future price movements. Ethereum supply conditions now reflect long-term holding dominance over active trading flows.