The recent crypto market has once again seen eye-catching major moves. According to public information, a well-known research institution currently holds 580,000 ETH, with an average cost basis of approximately $3,208. At the current price, this position faces an unrealized loss of around $140 million. More notably, the institution not only has no plans to reduce its holdings but has also announced a $1 billion additional investment to increase its position.

What does 580,000 ETH represent in scale? Converted into market value, it amounts to tens of billions of dollars, accounting for a significant proportion of the current ETH circulating supply. If the additional $1 billion investment is included, it is conservatively estimated that they could acquire tens of thousands more ETH. At that point, the institution’s holdings and market influence will significantly increase.

Many believe that whale accumulation simply indicates confidence in the asset. However, every step taken by institutions is driven by a clear strategic logic. In this case, the institution chooses to continue adding to its position while in a loss, with one key purpose being to dilute the average cost basis. The current price is already below the average cost, so each additional ETH purchased further lowers the overall average purchase price. As long as the price rebounds above the cost basis later, it can realize substantial gains. This is the fundamental logic behind institutional operations and a common risk management approach in unfavorable market conditions.

From this perspective, the whale’s accumulation behavior in a bear market reflects both confidence in the long-term outlook and a sophisticated grasp of cost control.