The Ethereum market is experiencing a battle between opposing forces that affect its stability. BitMine Immersion Technologies continues to accumulate ETH with a recent $113 million investment, while at the same time large holders are liquidating their positions to lock in profits. This clash of strategies is producing significant movements in both liquidity and price volatility.
BitMine Immersion Technologies, a digital treasury firm run by former Fundstrat executives, is aggressively building its position in Ethereum. According to sources close to the company, BitMine has reportedly executed even larger trades that have not been made public. Its total treasury is valued at roughly $13 billion, with a portfolio estimated at more than three million ETH. The company’s stated goal is to reach 5% of the entire Ethereum supply, funding these purchases through special share sales and private placements specifically directed at acquiring ETH.
In contrast, a group of large investors has begun selling the coins they bought at lower prices, increasing the supply available in both spot and futures markets. At the same time, a queue of validators is waiting to exit staking, representing more than one million ETH (approximately $5 billion). When each validator completes its withdrawal period, the coins become free to move or be sold. Some of these large holders also maintain leveraged short positions, which could trigger forced liquidations if the price moves against them, dumping even more coins into the market.
BitMine’s accumulation strategy versus whale liquidations
This clash is creating a precarious balancing scenario with significant consequences. On one hand, BitMine’s steady purchases provide a buyer of last resort that gives stability; on the other, whale sales and staking withdrawals add sudden supply, resulting in greater volatility and fluctuations in order book depth.
Market risk is heightened by the borrowed capital backing many of the large short positions, while the institutional signal is mixed: BitMine has shown conviction by selling its own shares to buy ETH, something other corporate treasuries are watching with interest and may potentially replicate. Technically, historic movements have been recorded, with 818,000 coins moved to exchange addresses in a single day, marking a daily record.
The near-term future of Ethereum’s price and liquidity will depend on two key factors: whether large treasuries like BitMine continue to announce new rounds of share sales to buy ETH, and the speed at which the staking withdrawal queue is emptied, determining the pace at which new supply will reach the market.
