Bitmine Acquires $358 Million in Ethereum from Galaxy and FalconX – Potential ETH Supply Constriction Ahead?

Arkham data has disclosed that Bitmine, the largest corporate holder of Ethereum, acquired an additional 80,325 ETH on Thursday, amounting to $358 million from Galaxy Digital and FalconX.

Referred to as the Ethereum ‘Strategy,’ Bitmine’s total ETH holdings now stand at 1,947,299 ETH, valued at $8.69 billion, according to on-chain analyst EmberCN.

Bitmine (BMNR) has received 80,325 ETH ($3.58 million) from the institutional platforms Galaxy Digital and FalconX in the past hour.
This acquisition should be part of their ETH purchases this week, combined with their holdings of 1,866,974 ETH as of August 31, bringing their total to 1,947,299 ETH ($86.9 billion).
This article is sponsored by #Bitget｜@Bitget_zh https://t.co/yXOy23Idg3 pic.twitter.com/ha2VqgeEj4

— 余烬 (@EmberCN) September 4, 2025

This indicates that their total holdings exceed those of SharpLink, the second-largest ETH holder, by more than double.

As of August 31, Bitmine possessed 1,866,974 ETH at an average cost of $3,883, while SharpLink had 837,230 ETH at an average cost of $3,594.

The acquisition follows the announcement from the publicly traded Bitcoin mining firm that it holds 1.87 million Ethereum tokens, representing nearly 1.55% of the total ETH supply.

This situation highlights the role of institutional entities like Galaxy Digital and FalconX in facilitating significant crypto transactions.

Bitmine Emulates Saylor’s Strategy – Bullish for Supply Squeeze

The transactions underscore Bitmine’s proactive ETH accumulation strategy, which may indicate confidence in the token’s long-term prospects, despite recent price volatility.

Moreover, on Tuesday, The Ether Machine reported that it added another 150,000 ETH to its treasury, increasing its total holdings to 500,000 ETH, valued at approximately $2.19 billion.

Ongoing accumulation by major players emphasizes that strategic positioning is crucial in the current market. Furthermore, the token is likely to continue drawing institutional interest in the upcoming months, potentially driving prices higher.

The accumulation of Ethereum has contributed to its rise to $4,385, reflecting a 20.1% increase over the past month and an impressive 84% rise over the last year, according to CoinMarketCap data.

Additionally, the latest CoinShares report reveals that ETH ETFs have assets under management totaling $37.9 billion, a positive indicator for sustaining ETH’s momentum.

How Long Will ETH Amid Treasury Play Sustain?

The excitement surrounding treasury has significantly influenced ETH’s recent price increase. Unlike Bitcoin, ETH holdings can be staked, transforming idle reserves into a source of yield. This positions Ethereum as a unique balance sheet investment: both an asset and an income generator.

However, this situation presents a dual challenge. If ETH continues to be locked for staking or yield, investors may anticipate ongoing price pressure, along with heightened volatility if holders are compelled to sell or if market sentiment shifts.

James Toledano, Chief Operating Officer at Unity Wallet, informed Cryptonews that improvements in network capacity, reduced DeFi transaction costs, and active Layer-2 adoption have also stimulated a surge in on-chain activity.

“Momentum may propel ETH higher in the short term; however, history warns of potential pullbacks in late summer or September, even following sharp rallies,” he noted.

Bulls consider ETH’s ability to maintain the $4,450 level as essential for sustaining upward momentum.

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