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Ethereum jumped 7.46% by September 11, hitting $2,619.0. Tom Lee called it the start of a “face-ripper rally” for short sellers — and his firm is sitting on the biggest corporate Ethereum stake in the world.
Lee’s Fundstrat has been bullish on Ethereum for a while, but the real story here is Bitmine Immersion Technologies. Lee chairs the company, which had been quietly buying Ethereum every single week. By September 2026, Bitmine had stacked 5.9 million ETH — roughly 4.9% of the entire global supply. A huge chunk of that is staked, pulling in yield on top of the price appreciation. That’s not a passive bet. That’s a calculated squeeze on a market full of short sellers who thought inflation would keep crypto pinned down.
It didn’t.
What the Inflation Data Actually Did
The August U.S. Consumer Price Index came in at an annual rate of 3.4%, right where analysts expected. But the Core CPI — which strips out food and energy — rose 0.3% month-over-month, a tick above forecasts. Not a disaster by any measure, but enough to spike Treasury yields briefly and jolt markets into a moment of confusion.
Then things flipped fast. Investors who’d been sitting in defensive positions — cash, bonds, anything but risk assets — saw the numbers and basically decided the inflation threat wasn’t as bad as feared. Capital rushed back into equities and crypto. Ethereum caught a big chunk of that flow.
Fundstrat had seen this coming, or at least positioned for it. The firm flagged that a lot of investors had gone defensive before the CPI release, which set up exactly the kind of short squeeze that Lee was describing. When those investors piled back in, short sellers got hit from both sides — rising prices and forced liquidations. That’s the “face-ripper” part.
Bitmine’s Weekly Buying and the Supply Crunch
Lee calls his strategy the “alchemy of 5%.” The idea, basically, is that consistent weekly purchases of Ethereum — not a one-time bet, not a market-timing play — slowly tighten supply and build a position that compounds over time. Bitmine has been running that playbook, and by September it had turned into something pretty significant.
5.9 million ETH is a lot. To put it plainly: Bitmine controls nearly one out of every twenty Ethereum tokens in existence. With much of it staked, that supply isn’t floating around on exchanges where short sellers can easily borrow and push prices down. It’s locked up. That structural tightness probably made the squeeze worse for anyone on the wrong side of the trade.
The company itself has shifted a lot over the past year. It came up as a mining operation — the name “Immersion Technologies” kind of gives that away — but under Lee’s chairmanship it’s moved toward being a strategic Ethereum accumulator. Different business model, different risk profile, and clearly a different outcome so far.
Ethereum’s week-long gain sat at 6.62% heading into September 11, so the 7.46% single-day move wasn’t coming out of nowhere. The trend was already building. The CPI data just lit the fuse on a market that was coiled and ready.
Short sellers who’d bet against Ethereum on the assumption that sticky inflation would keep the Fed hawkish and risk assets weak got caught badly. The liquidations that followed fed the rally further — a self-reinforcing loop that Lee had essentially predicted. He probably didn’t mind being right.
What’s Still Unclear
There’s no specific detail on what yield Bitmine is earning from its staked ETH. The source didn’t break that out. It’s also unclear how quickly the company plans to keep buying, or whether the weekly cadence continues at the same pace now that the position is already massive. No details on that yet.
And the broader market — it’s still reacting to macro data week by week. One CPI print doesn’t change the Fed’s entire trajectory. Investors who rushed back into risk assets on September 11 may reassess if the next inflation report comes in hotter.
But right now, Bitmine holds 5.9 million ETH, Ethereum is trading at $2,619.0, and Tom Lee’s “face-ripper” call aged pretty well in about 24 hours.
Frequently Asked Questions
What triggered Ethereum’s 7.46% price jump on September 11?
The move followed the August U.S. Consumer Price Index release, which showed annual inflation at 3.4%. Investors who had taken defensive positions before the data quickly moved capital back into risk assets, forcing short sellers into liquidations and pushing Ethereum to $2,619.0.
How much Ethereum does Bitmine Immersion Technologies hold?
By September 2026, Bitmine had accumulated 5.9 million ETH, representing roughly 4.9% of the global supply, with a significant portion staked for yield.
Why It Matters
The accumulation of 4.9% of Ethereum's total supply by Bitmine Immersion Technologies underscores the growing institutional interest in the cryptocurrency, particularly as it faces volatility from short sellers. This significant holding not only positions Bitmine as a major player in the Ethereum ecosystem but also signals confidence in Ethereum's long-term value proposition, potentially influencing market sentiment and trading dynamics among both retail and institutional investors. As Ethereum navigates its path amidst fluctuating market conditions, such high-stakes commitments from corporate entities could stabilize prices and foster greater adoption.
