SKN | BitMine Loads Up on $98M in Ether as Year-End Selling Caps Crypto Gains

Ethereum-focused treasury firm BitMine Immersion Technologies sharply increased its exposure to ether this week, deploying nearly $98 million into ETH as year-end tax dynamics and thin holiday liquidity continued to weigh on broader crypto prices.

According to blockchain data tracked by Nansen, BitMine acquired 32,938 ETH on Tuesday at an average price near $2,960, bringing its total holdings to roughly 4.07 million ETH, valued at approximately $12 billion at current market prices. The company also staked an additional 118,944 ETH, reinforcing its strategy of generating yield alongside long-term accumulation.

The buying spree comes at a time when crypto markets remain subdued, with ether struggling to break meaningfully above the $3,000 level despite intermittent rallies across December.

Ether accumulation continues despite muted markets

BitMine’s latest purchases highlight a growing divergence between large, balance-sheet-driven buyers and short-term market sentiment. While ETH has traded in a narrow range over recent weeks, BitMine has emerged as one of the most aggressive institutional accumulators of the asset.

Since last Monday alone, the company has added more than 77,400 ETH, widening its lead over competing Ethereum treasury vehicles. Fundstrat co-founder Tom Lee, who has helped shape BitMine’s Ethereum strategy, described the firm as the largest source of “fresh money” demand for ETH in the current market environment.

This steady accumulation contrasts with broader market behavior, where many investors have opted to reduce exposure rather than add risk ahead of year-end.

Tax-loss selling and holiday liquidity weigh on prices

Lee attributed the market’s lack of momentum in part to U.S. tax-loss selling, a seasonal pattern that typically intensifies in the final weeks of December. Investors often sell underperforming assets to offset capital gains elsewhere, creating additional supply pressure even in the absence of negative fundamentals.

“More tax-loss selling typically happens toward the end of December as individuals and institutions offload assets to lower their taxable income,” Lee said, adding that the effect can temporarily suppress prices even when long-term demand remains intact.

Holiday dynamics have compounded the effect. With many institutional desks operating with skeleton staffing or closed entirely, trading volumes have thinned, leaving algorithmic strategies and bots to dominate price action. Such conditions tend to amplify short-term moves while limiting follow-through.

Ether has reflected that pattern, posting sharp intraday swings without establishing a sustained trend.

Staking strategy signals long-term conviction

Beyond outright purchases, BitMine’s decision to stake a growing portion of its ETH holdings underscores a longer-term investment horizon. Staking not only reduces circulating supply but also generates yield, helping offset periods of price stagnation.

At current network rates, staking hundreds of thousands of ETH can produce meaningful recurring income, positioning BitMine more like a yield-generating digital asset company than a pure speculative holder. That approach mirrors a broader shift among crypto treasuries toward blending balance-sheet exposure with protocol-native cash flows.

Policy uncertainty adds another layer of risk

The backdrop to BitMine’s accumulation includes renewed political debate in the U.S. over wealth taxation. A proposed 5% wealth tax on billionaires in California, which would include taxes on unrealized gains, has drawn sharp criticism from crypto and tech leaders.

Former Kraken CEO Jesse Powell warned that such measures could accelerate capital flight, arguing that high-net-worth individuals may relocate along with their spending, investment, and job creation.

While the proposal remains uncertain, it adds another layer of policy risk that could influence how and where crypto capital is deployed in 2026.

Looking ahead

BitMine’s aggressive ETH accumulation amid year-end selling pressure highlights a familiar pattern in crypto cycles: long-term buyers stepping in when short-term incentives push others out. Whether that conviction is rewarded in early 2026 may depend on how quickly liquidity returns, tax-related selling subsides, and macro conditions stabilize. For now, BitMine’s actions suggest that at least some institutional players see current ether prices not as a ceiling, but as an opportunity.