**BitMine Bets Big on Ethereum: Here’s Why It Matters**

BitMine Immersion (NYSE: BMNR), led by well-known investor Tom Lee, is making a major move in the crypto world. The company recently increased its Ethereum (ETH) holdings to a massive $13.2 billion, owning around 2.83 million ETH tokens. Along with this, BitMine also holds 192 Bitcoin (BTC) and has $456 million in cash reserves.

This bold strategy makes BitMine the second-largest corporate holder of crypto, right behind Michael Saylor’s firm, MicroStrategy.

**Why Ethereum? Tom Lee Explains**

According to Tom Lee, who serves as the chairman of BitMine and CIO of Fundstrat, Ethereum is the most important long-term investment opportunity of this decade. He believes that two powerful trends—artificial intelligence (AI) and crypto—will drive ETH’s value much higher in the future.

Lee says Ethereum is still undervalued and trading below its true potential. That’s why BitMine plans to eventually own 5% of all ETH in circulation, which means they’re aiming for 6 million ETH in total. Right now, they’re only halfway there.

**Huge Demand Could Push ETH Higher**

Bitwise CEO Hunter Horsley called BitMine’s rapid accumulation of ETH in less than six months “legendary.” This aggressive buying has helped increase total ETH held by treasuries and ETFs to 5.66 million ETH, valued at over $26 billion. That’s a jump of $4 billion since the second quarter of this year.

Although inflows into U.S. spot ETH ETFs have slowed slightly in Q4 compared to Q3, the combined demand from treasuries and ETFs is still strong. This could support Ethereum’s price in the near future.

**Ethereum Supply Is Shrinking**

Since July, about 4 million ETH have been moved off exchanges, dropping from over 20 million to just 16.1 million ETH available for trading. This 20% drop in supply could reduce the risk of big price drops and create a supply crunch.

On top of that, if more ETFs follow Grayscale’s move to enable staking for ETH, demand could rise again—especially from institutional investors.

**Can ETH Hit $5K Soon?**

Ethereum has already bounced back 22% from its September low of $3,800 and is showing bullish momentum after staying above $4,500. The next big resistance levels are $4,800 and potentially $5,000.

However, some large holders (whales) are starting to take profits—selling over $70 million worth of ETH—which could slow down the rally if sell pressure increases.

In summary, BitMine’s massive ETH investment shows strong confidence in Ethereum’s long-term value. With growing demand from AI and institutional investors, shrinking supply, and rising interest from ETFs, Ethereum’s future looks bright—even if short-term price bumps occur.