BitMine adds another 109,500 ETH, why are institutions staking "against the trend"

According to the latest news, BitMine has just staked an additional 109,504 ETH, worth approximately $344 million. This marks the second large-scale increase in holdings by BitMine in recent times. As of now, BitMine has staked a total of 908,192 ETH, valued at about $2.95 billion. Interestingly, this move occurred amid downward pressure on ETH prices.

Large Whale Holdings Signal

How significant is BitMine’s staking volume? According to relevant data, BitMine currently holds over 4.1 million ETH, accounting for approximately 3.4% of the total Ethereum supply, with a value of around $130 billion. This figure helps explain why the market pays close attention to this institution’s every move.

Even more noteworthy is the frequency of their increased holdings. In just the past week, BitMine has made multiple staking moves:

• On January 8th morning, re-staked 109,500 ETH
• On January 8th early morning, staked 19,200 ETH
• Recently accumulated over 540,000 ETH

This intensive pace of accumulation reflects the institution’s ongoing bullish outlook on ETH.

Contrarian Buying During Price Decline

Here, a fascinating contrast emerges. According to the latest market data, ETH’s current price is $3,150.84, down 3.21% in the past 24 hours, and only up 1.39% over the last 30 days. In such a weak environment, BitMine continues to increase its holdings. What does this indicate?

From a market perspective, large institutional buying is often interpreted as a confirmation of the asset’s long-term value. BitMine’s actions suggest they believe the current price may be undervalued. This stands in stark contrast to short-term market sentiment and volatility.

Support from Ecosystem Fundamentals

BitMine’s accumulation is not an isolated event. The entire Ethereum ecosystem is experiencing a staking boom:

• The ETH staking exit queue has been cleared, with over 1.18 million ETH queued for staking
• Grayscale has launched an ETH staking ETF, distributing staking yields to investors
• Aave’s ETH deposits on the mainnet have hit a new all-time high

These data points indicate that both institutions and users are injecting more capital into the Ethereum network, often seen as a vote of confidence in the ecosystem’s fundamentals.

Short-term Volatility vs. Long-term Signals

It’s important to note that there is often a time mismatch between short-term price fluctuations and long-term holding signals. ETH’s recent decline may be influenced by multiple factors: market leverage swings, macro sentiment shifts, profit-taking, etc. However, these short-term factors do not necessarily alter institutions’ long-term valuation judgments.

From BitMine’s continued accumulation, it’s clear they are using real capital to express confidence in ETH’s future.

Summary

BitMine’s additional staking sends a clear signal: even amid ETH price pressure, institutional investors remain optimistic about its long-term value. This staking frenzy reflects the ongoing positive fundamentals of the Ethereum ecosystem. Of course, short-term price movements still depend on market sentiment, leverage risks, and other factors, but based on actual institutional actions, they are using increased holdings to demonstrate their confidence in ETH’s ecosystem.