BitMine Immersion Technologies, which is considered the largest institutional holder of Ethereum (ETH), has doubled its purchases of ETH in December, reflecting confidence in the asset.
Renewed buying is happening despite the tough environment for Ethereum. Increases in exchange flows and ETF outflows indicate short-term pressure across the market.
BitMine acquires 138,452 Ether a day in a week, and now controls 3.2% of the supply.
According to a recent disclosure, BitMine acquired 138,452 ETH last week, representing a 156% increase from the previous four weeks. Their total holdings amount to 3.86 million ETH.
This represents more than 3.2% of the circulating supply of Ethereum. Moreover, BitMine is two-thirds of the way toward its goal of reaching a 5% share of ETH supply.
Since adopting ETH as a reserve asset, BitMine has continued to make large purchases. Between June 30 and October 5, BitMine accumulated 2.83 million ETH. Since October 5, it has added another 1.03 million ETH to its holdings.
The weakness of Ethereum throughout the fourth quarter makes BitMine's continued accumulation even more noteworthy. Since early October, ETH has lost about 24.8% of its value, reflecting ongoing downward pressure.
December provided a brief respite from this trend. The price has risen by more than 4% since the beginning of the month, and BitMine's purchases of ETH have increased with it.
According to BitMine's chairman, Tom Lee, the accelerated buying activity by the company reflects its confidence that ETH is likely to see increases in the coming months, supported by several key catalysts.
These catalysts include the Fusaka upgrade, which was activated last week and offers significant improvements to Ethereum's scalability, security, and overall network efficiency. BitMine also points to the broader economic backdrop, with the Federal Reserve ending quantitative easing and the possibility of another rate cut tomorrow.
Together, these developments form the basis of the company's view that market conditions may become more supportive of ETH after weeks of volatility.
I added, "It has now been over 8 weeks since the shock event on October 10, which is enough time for cryptocurrencies to trade again based on future fundamentals."
Market conditions suggest volatility in the near term.
Nevertheless, network data suggests caution. CryptoOnchain noted that the net flow of Ethereum to Binance has increased. The exchange received 162,084 ETH on December 5, 2025. This was the largest daily flow of ETH to the exchange since May 2023.
Large deposits on exchanges often indicate imminent selling pressure, as investors typically move tokens to platforms before liquidation.
The analyst stated, "Given the size of this flow, market participants should remain cautious. A supply shock of this magnitude, if executed as market orders, could lead to high volatility or a short-term price correction."
Moreover, Ethereum trading funds also indicate declining demand. ETFs experienced a record net outflow of $1.4 billion in November 2025, marking the largest monthly withdrawal to date.
Trends continued in December. According to SoSoValue, an additional $65.59 million was withdrawn from ETH-focused ETFs in the first week of the month.
Milk Road published that "historically, reversals in ETF fund flows indicate liquidity pressure more than long-term fundamentals. When redemptions rise, it is usually a sign of a broader risk sentiment fracture, not that the asset itself has broken. If ETF outflows continue, short-term price movements remain volatile as liquidity is drained at the edges."
The ongoing disparities between direct accumulation and ETF fund redemptions highlight a market split, with individual and institutional players following different strategies regarding Ethereum forecasts.
