- BitMine remained laser-focused on its Ethereum accumulation strategy despite the dip in crypto prices.
- The company, chaired by Tom Lee, now owns 4.28 million ETH, locking 3.55% of the token’s circulating supply.
The crypto market is definitely under a lot of stress lately, with $5.251 billion in liquidated longs and $775.909 million in liquidated shorts since January 29, per Coinglass data. Nevertheless, BitMine Immersion Technologies, Inc. has been unrelenting in its weekly Ethereum (ETH) purchases, mirroring what Strategy (formerly MicroStrategy) has been doing with Bitcoin (BTC).
BitMine’s Latest Ethereum Purchase Announcement
On Monday, the Bitcoin and Ethereum network company, chaired by Tom Lee, announced its acquisition of 41,788 ETH. It didn’t specify the amount at which it triggered the transactions, but the asset notably traded between $2.1K and $3K during the period.
The latest development raised BitMine’s haul to 4,285,125 ETH, worth $9.929 billion, or at an average of $2,317 per ETH at the time of its disclosure. At this rate, the company owns 3.55% of ETH’s 120.69 million circulating supply, which almost mirrors the percentage of BTC locked in Strategy’s treasury.
The numbers add to BitMine’s 193 BTC holdings, $200 million stake in Beast Industries, $20 million stake in Eightco Holdings (ORBS), and $586 million in total cash reserves.
Ethereum’s fluctuation over the last 24 hours heading to Tuesday midnight (UTC) between a $2,158.94 low and a $2,393.06 high per ETH meant that BitMine’s Ether treasury valuation also swung between $9.251 billion and $10.255 billion during the timeframe. The current charts reflect a 51% to 56% drop from Ether’s all-time high (ATH) of $4,953.73 per ETH five months ago.
Tom Lee Confident in ETH’s Recovery
Lee stated that Ethereum hit a wall, falling from around $3K to $2.3K in January, despite confidently declaring earlier that it would rebound significantly before February. Nonetheless, its network has shown robust activity, with daily transactions logging an ATH of 2.5mm and active addresses soaring to 1 million.
The data indicated that Ethereum’s fundamentals and on-chain activity remained resilient despite falling prices. Lee claimed that it was the polar opposite of the trend during the 2021-2022 or 2018-2019 crypto winters, in which ETH’s price dips coincided with declining transaction activity and fewer active wallets.
Lee attributed Ether’s continuous struggles to the ripple effect of the 10/10 liquidation event last year. Making things worse was the capital flight from crypto to precious metals, as gold and silver prices smashed new records.
BitMine’s chairman believes Ether’s recent pullback is “attractive,” given its strong fundamentals. Furthermore, he noted that ETH’s current value does not reflect its high utility and growing role in the evolving financial landscape.
