- BitMine Immersion Technologies has purchased nearly 380,000 Ether (ETH) worth about $1.5 billion since a major crypto market crash last weekend.
- The firm holds over 3 million ETH, representing 2.5% of total supply, and aims to reach 5% ownership.
- Despite some digital asset treasuries trading below their net asset value, accumulation of Ether continues by major investors.
- Investors remain cautious after large market liquidations, with some Gold investment gains drawing attention away from crypto.
- Crypto markets are down 15% from recent highs, while gold prices have slightly receded after strong performance.
BitMine Immersion Technologies has acquired a total of 379,271 Ether (ETH), valued at about $1.5 billion, following a significant cryptocurrency market downturn last weekend. These purchases occurred in three separate transactions made between the weekend crash and the following Saturday.
Data from Arkham Intelligence and tracking by ‘BMNR Bullz’ show the buys in the amounts of 202,037 ETH just after the crash, 104,336 ETH on Thursday, and 72,898 ETH on Saturday. BitMine has not officially confirmed these transactions but is known as the largest Ether treasury holder worldwide.
The company currently controls more than 3 million ETH, roughly 2.5% of the total Ether supply, valued at approximately $11.7 billion. It began accumulating Ether in early July when prices hovered around $2,500 and aims to secure 5% of the supply.
Market observer Tom Lee described the potential for Ethereum to overtake Bitcoin in importance, similar to how equities surpassed gold after 1971. Lee noted to Ark Invest’s Cathie Wood, “Ethereum could flip Bitcoin similar to how Wall Street and equities flipped gold post 71.”
At the same time, Lee acknowledged that many digital asset treasuries are trading below their net asset value (NAV), which is the worth of their crypto holdings. He stated to Fortune, “If that’s not already a bubble burst… How would that bubble burst?” Research group 10x Research also reported that some key digital asset treasuries, such as Metaplanet and Strategy, are trading near or below their NAVs. However, they noted treasuries with strong capital and good management may still generate profits.
Meanwhile, Huobi founder Li Lin is attempting to raise about $1 billion to invest in an Ether treasury, aiming to capitalize on potential returns.
Following the recent market selloff, Lee told CNBC that investors are still recovering losses and that part of the hesitation comes from what he called “gold envy,” as gold has performed strongly this year. He added, “This is not the top of the crypto cycle, but leveraged longs in crypto are near record lows, so I think […] we’re at the basement and working our way back up.”
Currently, crypto prices are down around 15% from their highest level on October 7. In comparison, gold prices have slipped about 3% from their recent peak on Thursday.
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