Recent purchases of Ethereum by institutional players such as Bitmine and The Ether Machine are creating new market conditions. These actions may alter the dynamics of Ethereum's supply and demand.
Bitmine’s Purchase: $358 Million in ETH
Recently, Bitmine, now the largest corporate holder of Ethereum, purchased 80,325 ETH worth $358 million from Galaxy Digital and FalconX. This brings their total to 1,947,299 ETH, approximately $8.69 billion. This new acquisition doubled their holdings from days prior and far surpasses SharpLink's 837,230 ETH. As of August 31, 2023, Bitmine held 1,866,974 ETH at an average cost of $3,883 each, accounting for 1.55% of the total $ETH supply.
The Ether Machine’s Treasury Growth and IPO Plans
The Ether Machine is also executing its own institutional Ethereum accumulation strategy. They announced adding 150,000 ETH worth $654 million to their treasury ahead of their Nasdaq debut, increasing their total to 495,362 ETH supported by over $367 million in liquidity for further purchases. Earlier, to celebrate Ethereum's birthday, The Ether Machine bought 15,000 ETH ($56.9 million), demonstrating strong institutional interest in ETH.
Market Impact: Supply Squeeze and Price Dynamics
Institutional players holding large amounts of $ETH are locking away a significant portion of the supply. This can create a supply squeeze, particularly when price approaches key milestones. Ethereum has risen by 20% in the last month and 84% year-over-year due to these treasury activities. Staking adds another layer to the dynamics, as unlike $BTC, $ETH can be staked, creating yield while reducing circulating supply. James from Unity Wallet warns that better scaling and lower DeFi costs are driving on-chain activity, but cautions that September may be a volatile month.
Institutional accumulation of Ethereum is currently the biggest factor driving $ETH’s price in 2025. With Bitmine accumulating nearly 2 million ETH and The Ether Machine building a treasury of nearly 500,000 ETH, the combination of shrinking supply, staking yields, and ETF inflows is positive, yet volatility is possible if these players shift their positions.
