BitMine Accumulates 1.5M ETH: Why Smart Money Chooses Ethereum Over Bitcoin

Institutional tsunami hits Ethereum as BitMine's massive 1.5 million ETH accumulation signals major paradigm shift.

Smart Money's New Playground

Wall Street's crypto darling isn't Bitcoin anymore—it's Ethereum. BitMine's staggering position reveals what insiders already know: institutional flows are bypassing Bitcoin for Ethereum's superior utility and yield potential.

The Real Yield Revolution

While Bitcoin sits idle, Ethereum's staking mechanics generate actual returns—something traditional finance still can't wrap its risk-averse mind around. Institutions aren't just speculating; they're building revenue-generating crypto treasuries.

Inflection Point

This isn't another retail-driven bubble. BitMine's move mirrors BlackRock and Fidelity's Ethereum ETF explosions—proof that sophisticated capital finally understands where real blockchain value gets created.

Meanwhile, Bitcoin maximalists still think digital gold beats programmable money—proving some hedge funds would rather collect shiny rocks than build actual revenue engines.

Key Takeaways

Ethereum climbed above $4,770 as institutional inflows, whale accumulation, and record network activity boosted adoption. Market watchers now eye a breakout toward $5,500.

Ethereum [ETH] stepped into Q3 2025 with fresh strength as demand pushed its price above the $4,000 mark.

Once seen as a secondary choice to Bitcoin [BTC] among institutions, ETH has now secured its place alongside the flagship cryptocurrency in the eyes of major investors.

BitMine bets big on Ethereum

A prime example is Tom Lee’s BitMine, which has steadily expanded its ethereum holdings to more than 1.5 million ETH, now valued at roughly $7.19 billion.

Source: Arkham/X

The firm’s aggressive strategy included a recent $45 million purchase, adding nearly 9,500 ETH to its already sizable treasury.

While the latest buy-in at around $4,735 per token had not produced gains yet, BitMine’s earlier acquisitions, averaging $3,492, left it with close to $1.9 billion in unrealized profit.

Ethereum in full action

This coincided with ETH trading at $4,771.74 at press time, reflecting a 0.82% gain in the past 24 hours and a remarkable 31% surge over the last month, according to CoinMarketCap.

Moreover, institutional interest backed the rally, with Ethereum ETFs recording inflows of $337.7 million on the 23rd of August, according to Farside Investors.

On-chain data also painted a bullish picture.

Token Terminal figures showed Ethereum LAYER 1 activity at record highs, with both daily transactions and Active Addresses hitting unprecedented levels.

Bitcoin whale joins the ETH push

Adding to the bullish momentum, a major Bitcoin whale has shifted billions from BTC into ETH.

According to Lookonchain, the trader sold 4,000 BTC ($460 million) to accumulate 179,448 ETH worth about $806 million at an average price of $4,490.

His position included 135,265 ETH in long contracts ($581 million) with $58 million in unrealized gains, per Lookonchain.

On top of that, he converted another 300 BTC ($34.9 million) into ETH, bringing spot holdings to 122,226 ETH at an average of $4,377—already showing $42 million in paper profits.

What makes this surge even more compelling is that Ethereum’s growing demand has not come at the cost of high transaction fees.

Short-term challenges persist

However, despite record-breaking activity, gas prices stayed at historic lows, reflecting the success of Ethereum’s scaling upgrades.

This efficiency strengthened investor confidence, with analysts eyeing a potential breakout toward $5,500.

In fact, the network’s ability to handle massive transaction volumes at low costs enhanced its utility and reinforced its position as a long-term store of value.

Capitalizing on this momentum, BitMine Immersion Technologies recently moved to expand its at-the-market equity offering to $20 billion, bringing total approvals to $24.5 billion.

With part of these funds set aside for Ethereum accumulation, the move signals how institutions are increasingly positioning ETH alongside bitcoin as a core holding.