Ethereum's Substantial Accumulation Challenge: BitMine's Path to 5% Supply Hold

BlockBeats reports that as of August 28, BitMine has amassed a considerable position in Ethereum, currently holding approximately 1.7 million ETH tokens. However, achieving their strategic objective of controlling 5% of Ethereum’s total supply presents a formidable financial hurdle.

The Scale of Accumulation Required

To reach the targeted 5% threshold of Ethereum’s circulating supply, BitMine must acquire an additional 4.3 million ETH tokens. The capital requirement for this expansion depends heavily on market conditions. At ETH’s current valuation around 4534 dollars per token, acquiring this volume would necessitate approximately 19.5 billion dollars in capital deployment. Should prices decline to the 4200-dollar level, the required investment would decrease to approximately 18.2 billion dollars.

Market Context and Execution Constraints

The ETH market’s daily trading volume ranges between 30 billion and 50 billion dollars, establishing the practical boundaries within which such massive positions could theoretically be accumulated. These figures underscore both the scale of BitMine’s ambition and the significant market absorption challenges involved.

Strategic Comparison and Market Dynamics

The accumulation strategy contrasts notably with other prominent institutional players. Michael Saylor’s approach typically involves purchases in the 500 million to 1 billion dollar range, moves substantial enough to trigger Bitcoin price movements exceeding 2%. Tom Lee’s accumulation methodology demonstrates greater sophistication and measured execution, reflecting a more experienced approach to large-scale position building without creating excessive market disruption.

Technical Support Levels and Price Projections

Market analysis suggests that following ETH’s recent low point at 4060 dollars, a critical support zone has likely emerged between 4200 and 4400 dollars. This range represents what analysts term an “invisible floor”—a level where substantial buying interest can be expected to stabilize prices and prevent further depreciation. This floor reflects both institutional accumulation patterns and the broader market’s valuation consensus at current levels.