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Ethereum Update: BitMine Increases ETH Holdings Despite Market Downturn as Fusaka Approaches

Ethereum Update: BitMine Increases ETH Holdings Despite Market Downturn as Fusaka Approaches

Bitget-RWA2025/12/01 22:38
By:Bitget-RWA

- Ethereum (ETH) is seen as undervalued by 10 of 12 valuation models, with Metcalfe's Law projecting a $10,000 price target post-Fusaka upgrade. - BitMine, the largest ETH treasury firm, acquired 96,798 ETH ($285M) weekly, boosting holdings to 3.73 million tokens (3.7% of supply) ahead of the December 3 upgrade. - The Fed's expected rate cuts on December 10 and Ethereum's post-upgrade scalability improvements (60M block gas limit) reinforce institutional optimism despite $300M in crypto liquidations on Dec

Ethereum's Outlook: Undervalued Status and Institutional Momentum

Ethereum (ETH) is once again in the spotlight, with institutional investors and valuation models signaling strong potential for growth. Out of twelve major valuation frameworks, ten currently indicate that ETH is trading below its intrinsic value. According to Metcalfe's Law—which links a network's worth to its user base—Ethereum could reach nearly $10,000, especially as the highly anticipated Fusaka upgrade approaches and broader economic conditions shift in its favor.

Recent trading activity reflects this optimism. On November 24, 2025, Ethereum's price jumped over 5% to $2,922, bouncing back from a key support level after a turbulent week that saw $589 million withdrawn from crypto investment products.

Ethereum Market Chart

Fusaka Upgrade: A Major Milestone

Set for December 3, the Fusaka upgrade is poised to be a game-changer for Ethereum. By merging the Fulu and Osaka improvements, this update aims to boost scalability, security, and user experience. Notably, it will introduce PeerDAS technology, which streamlines data verification for the network.

Institutional players are taking notice. BitMine, the largest Ethereum treasury firm, has been ramping up its ETH purchases ahead of the upgrade. Last week alone, BitMine acquired 96,798 ETH, bringing its total holdings to 3.73 million tokens—valued at $10.5 billion and accounting for 3.7% of Ethereum's circulating supply. This aggressive accumulation stands in contrast to other crypto treasuries, which have been reducing their positions amid recent price declines. BitMine's CEO, Thomas "Tom" Lee, attributes this surge in buying to the upcoming Fusaka upgrade and expectations of a shift in Federal Reserve policy, resulting in a 39% week-over-week increase in ETH acquisitions.

Macroeconomic Trends and Network Fundamentals

Broader economic factors are also supporting Ethereum's bullish outlook. The Federal Reserve is anticipated to halt quantitative tightening and lower interest rates on December 10, which could encourage more investment in riskier assets like cryptocurrencies. Meanwhile, Ethereum's fundamentals remain strong: the network's block gas limit will rise to 60 million units after the upgrade, lowering transaction fees and improving throughput for decentralized applications. These enhancements align with valuation models that highlight Ethereum's expanding utility, especially within Layer 2 solutions.

Market Volatility and Institutional Strategies

Despite these positive signals, volatility remains a concern. On December 1, a global sell-off caused Bitcoin (BTC) to fall below $86,000, leading to $300 million in crypto liquidations and a 5.85% drop in ETH to $2,814. BitMine's stock also declined by 7.7% in pre-market trading, reflecting its leveraged exposure to Ethereum's price movements. The company holds $882 million in cash and a $36 million investment in Eightco Holdings, but its heavy concentration in ETH presents both opportunities and risks.

Analysts note a divergence in strategies among crypto treasury firms. While many have paused new acquisitions to reduce the gap between stock prices and net asset value, BitMine's continued bullish approach demonstrates strong confidence in Ethereum's future. The company is also working on the Made in America Validator Network, a staking infrastructure initiative planned for 2026 that could turn BitMine into a major yield-generating platform.

Valuation Models and Future Prospects

The consensus among valuation models—ten out of twelve pointing to undervaluation—aligns with Ethereum's ambitious technical roadmap. Metcalfe's Law, which suggests that network value grows with the square of its user base, supports a potential price target of $10,000 as adoption accelerates. This optimistic projection depends on the successful rollout of the Fusaka upgrade and continued favorable macroeconomic trends, including the Federal Reserve's anticipated policy changes. For now, the market remains dynamic, balancing institutional enthusiasm with ongoing volatility.

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Disclaimer: The content of this article solely reflects the author's opinion and does not represent the platform in any capacity. This article is not intended to serve as a reference for making investment decisions.

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