Ethereum-focused treasury firm BitMine added another 28,625 ETH to its balance sheet, increasing its total crypto holdings to more than 3.5 million ETH. Following the latest purchase, BitMine now has control over 3% of Ethereum’s circulating supply.
BitMine buys $82 million in ETH
According to an X post by on-chain analytics account Lookonchain, Tom Lee’s BitMine Immersion Inc. has made another major ETH purchase. Notably, the firm has scooped up 28,625 ETH amid the market dip.
BitMine’s latest ETH purchase has propelled its total crypto holdings to more than 3.5 million ETH, representing 3% ETH’s active circulating supply. The total value of digital assets held by the firm currently sits just shy of $10 billion.
Although the company has already made public its ambition to hold 5% of Ethereum’s total supply, the timing of the latest purchase is interesting. ETH price has declined by 29% over the past month, from almost $4,200 on October 26, to $2,800 at the time of writing.
It is also worth highlighting that BitMine is currently holding a notional loss of more than $4.5 billion on its total ETH holdings. Essentially, the firm’s total investment in ETH is down almost 30%, a worrying sign for Lee.
Despite the price drawdown, it appears that BitMine is firm in pursuing its 5% total ETH supply goal. To achieve the goal, BitMine will have to hold slightly more than 6 million ETH on its balance sheet.
All institutions are not on the same page
While BitMine continues to stack ETH despite the market carnage, not all corporates are of the same opinion. For instance, FG Nexus recently sold 11,000 ETH to finance its share repurchase program.
Similarly, another Ethereum firm, ETHZilla, sold about $40 million worth of ETH for its own share repurchase initiative. An increasing number of companies liquidating their crypto holdings during times of financial distress casts a doubt over the viability of the emerging trend of digital asset treasuries.
That being said, BitMine’s Lee recently forecasted that ETH is likely to follow Bitcoin’s ‘supercycle,’ holding the potential to increase in price by as much as 100 times.
