BitMine's $1.87B ETH Buy: Institutional Confidence?

BitMine Boosts Ethereum Holdings Amid Price Dip

BitMine Immersion Technologies has significantly increased its Ethereum holdings, now totaling $10.8 billion after a rapid accumulation. This figure represents 2.151 million ETH. However, the price of ETH has dipped by 1.88%, suggesting strong sell pressure despite the large purchase.

Institutional Confidence in Ethereum

According to a press statement, BitMine’s boosted Ethereum treasury makes it the largest globally, second only to Strategy Inc. in overall crypto holdings. In addition to ETH, the company also holds 192 Bitcoin, a $214 million stake in Eightco, and $569 million in cash reserves.

Chairman Thomas “Tom” Lee likened the company’s investment strategy to major historical shifts in finance. The firm added 82,000 ETH in the last week. Now, a $100 price movement in Ethereum impacts BitMine’s treasury by over $200 million, highlighting their extensive market exposure.

Market Reaction and BMNR Performance

BitMine's influence is increasingly visible in the market. Shares of BMNR have become the 28th most traded equity in the United States, with an average daily turnover of $2 billion, surpassing Arista Networks and approaching Eli Lilly. Institutional backing includes investments from ARK’s Cathie Wood, Founders Fund, Galaxy Digital, and Pantera.

Ethereum Price Consolidates

At the time of writing, Ethereum trades around $4,535, down 1.55% on the day after briefly hitting $4,619. Despite the daily dip, ETH is up 5.36% and 2.07% over the last week and month, respectively.

BMNR shares closed at $55.09, a 15.28% increase in one day, and up 25.63% over the last five days, though still down 18.07% over the past month.