BitMine Nears 4 Million Ethereum Reserve Despite Market Dip, Faces MSCI Challenges

BitMine, a major player in the crypto reserve space, is making headlines again by nearly reaching 4 million Ether (ETH) in its holdings. This move comes even as the overall cryptocurrency market faces a downturn, with altcoins dropping more than 5% and Ethereum slipping below the $3,000 mark.

While Bitcoin recently hovered around $86,000, BitMine has chosen to focus heavily on Ethereum. The company believes investing in ETH offers more upside due to its lower market cap compared to Bitcoin, allowing large-scale purchases to have a greater impact. Currently, BitMine holds 3.97 million ETH, which accounts for about 3.2% of the total ETH supply. The company aims to reach 5% and expects to cross the 4 million mark soon.

Under the leadership of Chairman Tom Lee, BitMine has been steadily increasing its ETH reserves. The company recently added over 102,000 ETH in just one week. Lee noted that the recent stabilization in crypto prices following the October 10 crash shows signs of recovery. BitMine has been able to reduce its average cost per ETH to around $3,074.

Despite these gains, BitMine may face a new challenge ahead. MSCI, a global index provider, is reportedly considering removing companies that hold large crypto reserves—like BitMine and MicroStrategy (MSTR)—from its indices. If this decision goes through by 2026, it could impact how investors view and access BitMine through traditional financial markets.

The potential exclusion is based on MSCI’s view that crypto reserve firms resemble funds more than traditional operating companies. This stance could limit exposure and affect BitMine’s stock performance, especially given that it currently ranks as the 41st most actively traded stock in the U.S., with a daily trading volume of $1.9 billion.

Looking ahead, Ethereum could face increased pressure if market sell-offs continue. Analysts are watching key support levels at $2,814 and $2,638. While ETH stayed above $3,400 during the initial October dip, continued weakness has turned this level into strong resistance.

In summary, while BitMine continues to grow its Ethereum reserves aggressively and sees opportunity in the current price dip, looming regulatory and indexing changes could create new headwinds in the near future.

Keywords: BitMine, Ethereum reserve, ETH holdings, crypto reserves, MSCI index removal, Bitcoin price, altcoin market drop, crypto market trends, Tom Lee, institutional crypto investment.