TLDR
- BitMine bought 379,271 ETH worth $1.5B after the recent market crash.
- BitMine now holds over 3 million ETH, about 2.5% of the total supply.
- Tom Lee warns digital asset treasuries may be trading below NAV.
- Ether treasuries like Metaplanet are trading near or under their NAVs.
BitMine Immersion Technologies has purchased over $1.5 billion worth of Ether in the days following the recent crypto market crash. The firm continues to grow its holdings despite rising concerns about a digital asset treasury (DAT) slowdown, raised by Fundstrat’s Tom Lee. Lee has warned that the DAT market may be losing momentum, but he remains confident in Ether’s long-term value.
BitMine’s Aggressive Ether Purchases Post-Crash
According to on-chain data from Arkham Intelligence and tracking group ‘BMNR Bullz’, BitMine Immersion Technologies acquired 379,271 ETH in three separate transactions after the market crash. The firm purchased 202,037 ETH immediately following the weekend crash, followed by another 104,336 ETH on Thursday and 72,898 ETH on Saturday.
These purchases bring BitMine’s total Ether holdings to over 3 million ETH, valued at around $11.7 billion at current market prices. This represents about 2.5% of the total Ether supply. The company has been increasing its treasury since July, when Ether was trading near $2,500. Its target is to hold 5% of the total supply.
BitMine is now recognized as the world’s largest Ether treasury holder. Although the firm has not released an official statement confirming the transactions, the purchases are traceable through public blockchain records.
Tom Lee Remains Bullish Despite Treasury Concerns
Tom Lee of Fundstrat has raised concerns over the performance of digital asset treasuries, saying that many are now trading below their net asset value (NAV). Speaking to Fortune, Lee said, “If that’s not already a bubble burst… How would that bubble burst?” He believes that current NAV discounts suggest the treasury hype may be fading.
Despite these remarks, Lee continues to support Ether’s long-term potential. Speaking to ARK Invest CEO Cathie Wood, Lee said, “Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post 71.” He noted that many traders are still cautious after the recent high-leverage liquidation, but he sees this as a rebuilding phase for the market.
Lee also appeared on CNBC, where he pointed to a slowdown in leveraged positions but said the market is recovering. He believes the downturn is not the top of the cycle and expects slow progress going forward.
DATs Trading Below NAV Raise Market Concerns
Digital asset treasuries such as Metaplanet and Strategy are trading near or under their NAVs, according to research from 10x Research. This has added to concerns about the performance of DATs in the current market.
The research suggests that even though many treasuries are underperforming, those with strong capital reserves and experienced trading teams might still find opportunities. The gap between asset value and market price could present value for well-managed funds.
Huobi founder Li Lin is reportedly seeking to raise $1 billion to launch an Ether-focused treasury. This shows that despite current market issues, some investors still see value in long-term Ether holdings.
Market Conditions Show Signs of Caution
Crypto markets are still down roughly 15% from their record highs on October 7. Gold, often seen as a competing asset, has also fallen about 3% from its recent peak. Tom Lee referred to this as “gold envy,” where crypto investors compare returns with the gold market’s strong year.
Lee added that the current market has fewer leveraged long positions, suggesting a lower risk of further sharp liquidations. Traders remain cautious, but some activity is slowly returning as the market tries to stabilize.
While Ether’s price has seen volatility, firms like BitMine are continuing to invest heavily. Their recent purchases signal ongoing institutional interest in the asset, even as others hesitate due to treasury concerns.
