Ethereum Updates: BitMine Holds 3.63 Million ETH—Will Fusaka Upgrade and Fed Actions Counteract $3.7 Billion Deficit?

BitMine Accelerates Ethereum Acquisition Strategy

BitMine, a treasury firm specializing in Ethereum and headed by Tom Lee of Fundstrat, has ramped up its ETH accumulation efforts. In recent weeks, the company has purchased an additional 97,000 ETH, moving closer to its ambition of controlling 5% of Ethereum’s total supply. BitMine’s current holdings stand at 3.63 million ETH, which is valued at roughly $10.39 billion based on present market rates. This amount now accounts for 3% of Ethereum’s circulating supply.

The company’s aggressive buying, including a recent $83 million acquisition, demonstrates its strong belief in Ethereum’s future prospects, even as the broader crypto market experiences volatility.

Anticipating the Fusaka Upgrade

BitMine’s approach is closely aligned with Ethereum’s forthcoming Fusaka upgrade, expected to launch in late 2025. This major network update is designed to enhance scalability by streamlining data processing for layer-2 transactions, which should lower transaction fees and boost throughput. Developers view Fusaka as a pivotal advancement for Ethereum, enabling the network to support greater transaction volumes from decentralized applications and layer-2 solutions. For BitMine, this upgrade could significantly increase Ethereum’s utility as a core asset, reinforcing its investment thesis around staking rewards and tokenized real-world assets.

Federal Reserve Policy and Crypto Market Dynamics

Shifts in Federal Reserve policy are also influencing the cryptocurrency landscape. With the Fed indicating a probable interest rate cut in December 2025, investors are increasingly turning to riskier assets such as Bitcoin and Ethereum. This trend has already propelled Bitcoin’s price above $85,000 and fueled a broader surge in the crypto market as liquidity grows. Tom Lee, a prominent supporter of Ethereum’s potential for a “supercycle,” attributes recent declines in ETH prices to the effects of quantitative tightening. He views the current downturn as a strategic buying opportunity and predicts a recovery to $7,500 by the end of the year, citing increased institutional participation and the upcoming Fusaka upgrade as key drivers.

Challenges Facing BitMine’s Holdings

Despite its bullish outlook, BitMine faces significant obstacles. The company’s stock (BMNR) has dropped 80% since its July high, mirroring the wider crypto market downturn and the dilution resulting from a $24.5 billion fundraising initiative. Although BitMine’s 3.63 million ETH are now worth $11.2 billion, the position is currently underwater, with estimated unrealized losses of $3.7 billion. Analysts warn that BitMine’s future depends on a rebound in Ethereum’s price and the successful rollout of its “Made-in-America Validator Network” (MAVAN), a staking infrastructure project scheduled for 2026.

Institutional Adoption and Market Outlook

The combination of the Fed’s more accommodative stance and Ethereum’s technical advancements is creating a more attractive environment for institutional investors. Grayscale’s recent introduction of a spot Dogecoin ETF on NYSE Arca signals growing mainstream acceptance of cryptocurrencies, further solidifying Ethereum’s role in the evolving financial landscape. As BitMine pursues its goal of owning 5% of Ethereum’s supply, the outcome will likely depend on the interplay between regulatory developments, network upgrades, and monetary policy shifts.