BitMine Adds $417 Million in Ethereum Amid Market Dip

Ethereum has seen nearly a 20% price drop from August highs, resulting in a varied response in the broader crypto market. Retail investors appear to be cautious, but institutional buyers seem to be acting fast. For instance, BitMine made news with a portfolio purchase totaling 104,336 ETH carried out for a price of $417 million during the decline. 

This large purchase is evidence of a market participant developing longer term confidence in Ethereum’s value despite the short-term volatility. On-chain data shows that large holder accumulation, also known as Ethereum whale activity, has increased amidst declining prices. Historically, this pattern represents accumulation phase buying before any substantial jumps in price levels.

🔥 TODAY: BitMine bought 104,336 $ETH worth $417M as prices fell 20% from August highs, per onchain data. pic.twitter.com/FgpEWZkvz2

— Cointelegraph (@Cointelegraph) October 16, 2025

BitMine’s Bold Bet on Ethereum

BitMine’s $417 million purchase adds weight to the narrative that institutional investors view Ethereum as undervalued after recent pullbacks. The purchase aligns with previous accumulation trends, where large investors increased holdings during correction periods.

This is an interesting time, ETH has lost nearly a fifth of its value since the August peak and it has triggered many people to start to believe that it is too low. In addition, there has also been a slight increase in Ethereum whale activity, which signifies that smarter money may be preparing to go long.

Institutional Confidence Remains Strong

The market correction hasn’t shaken institutional conviction. Instead, it appears to have reinforced it. BitMine’s massive buy reflects a broader sentiment that Ethereum remains a core digital asset with strong long-term fundamentals.

While short-term traders often exit during declines, entities like BitMine see opportunity. This strategic move shows a clear difference between speculative selling and institutional accumulation. Increased Ethereum whale activity typically reflects confidence that market prices do not match the underlying value.

On-Chain Data Highlights Whale Accumulation

Blockchain analytics companies have said wallets that contain over 10,000 ETH have routinely begun to increase their balances during the past few weeks. This pattern is in sync with the activity of BitMine, and it further supports the longstanding pattern of institutional accumulation.

The number of addresses with significant ETH holdings has risen by more than 4% month-over-month, indicating consistent buying pressure. This continued BitMine Ethereum purchase adds fuel to the idea that whales expect future appreciation. Historically, such accumulation phases have preceded major upswings in the ETH price trajectory.

Market Reactions and Analyst Insights

Crypto analysts are split on the implications. Some believe this purchase confirms Ethereum’s resilience and marks a new phase of institutional adoption. Others caution that while ETH price correction may attract big buyers, it doesn’t guarantee immediate price recovery.

According to market analysts, Ethereum’s long-term viability will depend on the continued growth of the ecosystem, Layer-2 adoption, and global updates to the network. Still, BitMine’s action could lead to some renewed interest from institutions still sitting on the sidelines. The largest proponents of the asset now display a level of faith and confidence in their purchase of the asset.

Broader Implications for the Crypto Market

The BitMine purchase doesn’t just reflect confidence in Ethereum; it signals a broader shift in market sentiment. Large investors accumulating during corrections often indicate belief in long-term value rather than short-term speculation.

Considering the ETH price drop, we could see many institutions take a cue from BitMine. If this turns into a trend, Ethereum could resume surprising us with upward behavior sooner than later. Ongoing buying pressure underlined by improving on-chain fundamentals may create the environment for yet another bull cycle.