Tom Lee’s BitMine Immersion tech, a leading Ethereum treasury firm, is down a massive $6 billion on its total ETH holdings, as the second-largest cryptocurrency by reported market cap lost almost 20% in value over the past week. However, the rising percentage of ETH being staked on the network offers some hope to the bulls.
BitMine records notional loss of $6 billion
BitMine, the investment firm headed by Fundstrat’s Lee, is currently facing an unprecedented challenge as it battles an unrealized loss of $6 billion on its ETH holdings. Over the past few months, BitMine has made a reputation for itself as being the most aggressive ETH buyer.
However, now BitMine’s decision to aggressively accumulate ETH is being tested, as the digital asset continues to decline in price amid an uncertain global macroeconomic outlook.
According to data from Coingecko, BitMine currently holds slightly more than 4.2 million ETH, valued at about $9.875 billion, per current market prices. Importantly, BitMine currently holds 3.5% of the total ETH circulating supply and aims to eventually hold 5% of the total supply.
However, it remains to be seen if BitMine maintains their original objective of reaching the 5% mark, or if the recent market volatility compels them to reconsider. Recent actions indicate that Lee remains unfazed by the recent ETH price action.
Just last week, BitMine scooped up another 40,000 ETH, bought at an average price of $2,220. Lee remains confident in ETH’s ability to record extraordinary gains, as he recently predicted that the digital asset may surge as high as $62,000.
ETH staking rises to 30% on the network
Meanwhile, ETH staking on the Ethereum network recently crossed the 30% milestone, tying up a major chunk of the cryptocurrency on the network. As an increasing amount of ETH gets staked on the network, the narrative of ‘supply crunch’ is likely to pick momentum.
BitMine is one of the leading entities that has staked ETH on the network. Earlier this year, BitMine staked another 19,200 ETH on the network, worth almost $61 million at the time.
