Today, BitMine Immersion Technologies reported that it has added $321 million worth of Ethereum (ETH) to its stockpile over the last week.BitMine Chairman Thomas Lee said that the purchase shows stabilizing market conditions following a significant sell-off event earlier this month.
BitMine Immersion Technologies (NYSEAMERICAN: BMNR) stock rose 6.96% to $53.83, up $3.42 from its previous close of $50.41. The stock price oscillated between $51.77 and $53.94 during the day, as Ethereum (ETH) rebounded to $4,209, up $142.34 or 3.44%.
On-chain data aggregate by Arkham intelligence, BitMine holds 3.313 million Ethereum, worth over $13.8 billion, 192 Bitcoin, worth over $22 million, and $305 million in cash on hand. Over the past week, the organization has added 77,055 ETH, making it the largest Ethereum treasury company to date. The NYSE American-traded firm is the second-largest cryptocurrency treasury overall, after Strategy, which has more than $73 billion in Bitcoin.
BitMine links the ETH surge to global factors
Ethereum has been experiencing a recent surge, along with the rest of the crypto market. ETH price increased by 3% in the past week to a current price of $4,209. CoinGecko data reveals that ETH surged to $4,246 overnight, the highest level recorded in the previous two weeks.
Thomas J. Lee, the chairman of BitMine and co-founder and head of research at Fundstrat Global Advisors, attributed ETH’s recent upswing to increased trade relations between the U.S. and Canada after a sharp decline and crypto market plunge earlier this month.
“The progress in trade talks between the U.S. and China is a positive for Ethereum and crypto broadly. These are global assets, and rising tensions triggered the largest ever deleveraging in crypto a few weeks ago.”
Thomas J. Lee, Chairman of BitMine and co-founder and Head of Research at Fundstrat Global Advisors.
Lee claimed that although ETH’s and crypto market fundamentals are “uncorrelated” with stocks, Fundstrat’s research over the last 15 years has demonstrated that ETH generally performs better when stocks increase. He added that the rise in stocks indicates that the crypto market is correlated with “risk-on” assets through the related leverage channel.
BitMine strengthens institutional confidence in ETH
On October 10, BitMine made headlines when it paid around $103.68 million for 23,823 Ethereum. The substantial investment demonstrated a longer-term outlook for the entire market, despite short-term price fluctuations.
Tom Lee claimed that ETH will be a key component of blockchain adoption. He said that the recent acquisition of the company aligns with a broader discourse around institutional confidence. BitMine demonstrated that institutional players are adopting a longer-term perspective, focusing more on structural growth and technological advancements.
BitMine stated that it plans to push ETH’s financial industry maturation and amass 5% of ETH’s total supply. Additionally, BitMine stated that the purchase demonstrates institutional holders’ high level of confidence in Ethereum’s long-term prospects.
Companies increasing their Ethereum holdings are becoming increasingly popular. Strong spot ETH inflows and institutional interest have made major contributions to corporate treasuries this summer. Rival SharpLink Gaming declared that it had recently acquired 39,008 ETH, bringing the total amount of ETH held by the company to 837,230.
The total amount of Ethereum (ETH) held in treasuries by publicly traded corporations is worth approximately $18.22 billion.
As previously reported by Cryptopolitan on September 6, BitMine increased its treasury by $358 million, solidifying its position as one of the biggest institutional Ethereum investors. The $358 million infusion further fueled ETH’s price rally.
BitMine received two large ETH transfers from Galaxy Digital and FalconX, bringing its total holdings to 1,947,299 ETH, valued at approximately $8.69 billion. These transfers added roughly 80,000 ETH to BitMine’s wallets.
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