BitMine Immersion Technologies, currently the world’s largest corporate Ether holder, has continued to build its position despite a pullback in broader treasury activity and growing short interest from top-performing traders. Blockchain data tracked by Lookonchain shows BitMine purchased $199 million in ETH over the past two days — a $68 million buy on Saturday followed by $130.7 million on Friday. With these acquisitions, BitMine now controls $11.3 billion in Ether, equal to 3.08% of the circulating supply. The company has publicly referenced a long-term target of reaching 5%, according to StrategicEthReserve data. BitMine also holds roughly $882 million in cash, which could support further accumulation.
Digital asset treasury (DAT) activity has slowed sharply. Corporate ETH purchases fell 81% in three months, declining from 1.97 million ETH in August to 370,000 ETH in November. BitMine absorbed most of what remained, acquiring 679,000 ETH worth $2.13 billion over the past month.
Investor Takeaway
BitMine is buying aggressively into a market where treasuries have largely stepped aside. The company is accumulating during weakness rather than chasing rallies.
How Are Top Traders Positioning Themselves?
While BitMine continues to buy, the industry’s best-performing traders tracked by Nansen — known as “smart money” accounts — are leaning the opposite way. Nansen data shows the group added $2.8 million in short positions over the past 24 hours, with their combined short exposure reaching $21 million on Hyperliquid.
Spot Ether ETFs are moving in the same direction. Funds recorded $75.2 million in net outflows on Friday, the second straight day of withdrawals, after posting $1.4 billion in outflows in November, according to Farside Investors. Weak ETF flows signal that institutional demand remains limited compared to the inflows seen in Bitcoin products earlier this year. ETF volumes have not yet offered a counterweight to short-term trader sentiment.
Is Ether Approaching a Supply Squeeze?
Despite the cautious positioning from traders, exchange balances continue to drop. Ether held on centralized exchanges fell to 8.7% last Thursday — the lowest level since the network launched in 2015 — and remained near that level at 8.8% on Sunday, Glassnode data shows. Exchange reserves have fallen 43% since July, when treasury activity began increasing.
Macro research feed Milk Road described the current backdrop as “ETH is quietly entering its tightest supply environment ever.” The group added, “Sentiment feels heavy right now, but sentiment doesn’t dictate supply. ETH supply is tightening in the background while the market decides its next move. When that gap closes, price follows.”
By comparison, 14.7% of Bitcoin’s supply remains on exchanges, suggesting ETH is being pulled into longer-term positions at a faster rate. Staking, restaking, L2 usage, treasury accumulation and collateral loops continue to remove supply from liquid markets.
Investor Takeaway
ETH is entering one of its tightest liquid-supply phases at the same time traders are short. If supply continues to shrink, price pressure may build faster than sentiment shifts.
What Are Technical Indicators Suggesting?
Analyst “Sykodelic” pointed to a breakout in On-Balance Volume (OBV), a momentum indicator that measures buying pressure. OBV moved above resistance on Friday, even as the price was rejected — a divergence the analyst described as a sign of underlying accumulation. “This is a sign of buying strength, and typically, the price will follow,” they said. “Nothing is guaranteed with indicators, but I have found that OBV tends to be one of the most reliable leading indicators. Mix that with the fact that the PA just looks bullish, I think we’re going to see high before any meaningful pullback.”
Ether has held above $3,000 for five consecutive days but has not broken through resistance at $3,200. Over the past 24 hours, ETH traded around $3,050. The ETH/BTC pair also moved higher last week after breaking its downtrend line, suggesting relative strength despite weak ETF flows.
Where Does the Market Stand Now?
BitMine’s accumulation contrasts sharply with the mood among professional traders and ETF markets. The divergence highlights the mixed conditions across Ether’s ecosystem: declining liquid supply, reduced ETF demand, rising short interest and steady corporate accumulation.
Whether the tightening supply or the downbeat sentiment wins out in the short term remains unclear. For now, open interest, treasury flows, exchange reserves and ETF activity continue to pull in different directions. BitMine is betting that supply dynamics will dominate.