Altcoins News

Story: Bitmine Amasses 4.9% of Ethereum Supply as Short Sellers Face 7% Rally Squeeze

By Evie Vavasseur

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What the Inflation Data Actually Did. The August U.S. Consumer Price Index came in at an annual rate of 3.

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Bitmine's Weekly Buying and the Supply Crunch. Lee calls his strategy the "alchemy of 5%." The idea, basically, is that consistent weekly…

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What's Still Unclear. There's no specific detail on what yield Bitmine is earning from its staked ETH.

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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…

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Lee's Fundstrat has been bullish on Ethereum for a while, but the real story here is Bitmine Immersion Technologies.

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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.

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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…

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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…

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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…

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See also: Hyperliquids 500% Fee Wreaks Havoc on Oil Short-Sellers as Prices Surge to $100

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5.9 million ETH is a lot. To put it plainly: Bitmine controls nearly one out of every twenty Ethereum tokens in existence.

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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…

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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.

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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.

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Related: 10-Year Treasury Yield Surges Past 5% for First Time Since 2024, Shaking Markets

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