TLDR
- BitMine now holds 3.24 million ETH, about 2.7% of Ethereum’s total supply.
- Ethereum’s price drop in October led to BitMine’s $820 million purchase.
- BitMine aims to own 5% of Ethereum’s supply as part of its long-term strategy.
- BitMine also holds 192 BTC, $219M in cash, and $119M in Eightco equity.
Tom Lee’s BitMine Immersion Technologies has expanded its Ethereum holdings by purchasing over 200,000 ETH in a week, bringing its total to 3.24 million ETH. The company made this acquisition amid a recent market downturn that saw ETH’s price drop. This move is part of an ongoing strategy to increase its stake in Ethereum, as BitMine aims to secure up to 5% of the total ETH supply in the coming years.
BitMine’s Aggressive Ethereum Acquisition Strategy
BitMine Immersion Technologies, under the leadership of Tom Lee, has been actively acquiring Ethereum since the summer. The company’s latest purchase of approximately 203,800 ETH brings its total holdings to 3.24 million ETH.
This represents about 2.7% of Ethereum’s circulating supply. The firm has made it clear that it intends to continue this strategy, with a long-term goal of reaching 5% of the total ETH supply.
The firm’s decision to buy a large volume of ETH follows recent market events that saw a sharp decrease in the cryptocurrency’s price. Tom Lee believes the downturn presents a buying opportunity, especially considering the growing institutional interest in Ethereum. BitMine has consistently emphasized that Ethereum is a “truly neutral” blockchain, making it a solid investment choice for the future.
The $820 Million Week of Purchases
In just one week, BitMine spent $820 million on Ethereum, as part of its aggressive accumulation strategy. Ethereum’s price has fluctuated around $4,000 in recent days, following a market correction that saw a large sell-off. Despite the price drop, BitMine has continued to buy ETH, positioning itself to benefit from what it believes will be a “Supercycle” for Ethereum in the coming years.
In addition to its ETH holdings, BitMine also owns other digital assets, including 192 BTC, $219 million in cash, and $119 million in equity in Eightco Holdings. These assets contribute to the company’s total crypto and cash holdings of $1.34 billion, showcasing its diverse portfolio.
Ethereum’s Price Drop Creates Buying Opportunities
The recent price drop of almost 10% in October, triggered by a massive deleveraging event in the crypto market, has created an attractive environment for long-term investors like BitMine. Tom Lee sees this price dislocation as a chance to acquire ETH at a discounted rate.
He noted that such market conditions, though challenging in the short term, provide strong risk/reward potential for investors looking to capitalize on Ethereum’s future growth.
“The crypto market saw one of its largest deleveraging events ever last week, and this put downward pressure on ETH prices,” Lee said. “Given the expected Supercycle for Ethereum, this price dislocation represents an attractive risk/reward.”
Future Plans for BitMine’s Ethereum Holdings
BitMine’s acquisition strategy is set to continue in the coming months, with the firm aiming to increase its Ethereum holdings even further. The company’s ambitious goal is to eventually hold 5% of the total circulating supply of ETH, which would significantly solidify its position in the market. As institutional adoption of Ethereum grows, BitMine expects its long-term strategy to yield substantial returns.
While Ethereum’s price has been volatile in recent weeks, BitMine remains confident in its position, believing that the underlying fundamentals of Ethereum will drive its growth over time. The company is also expected to continue monitoring the market for further opportunities to expand its Ethereum holdings.
