BitMine expanded its Ethereum holdings with another purchase of 25,000 ETH worth about $41 million, extending a rapid accumulation strategy despite continued weakness in the cryptocurrency’s price. Blockchain analytics platform Lookonchain said the latest transaction originated from wallets linked to BitGo.
The acquisition brings BitMine’s Ethereum purchases to 125,000 ETH, valued at roughly $206 million, over the past three days. The buying spree comes as Ethereum trades near $1,644 and highlights the company’s continued push to build its crypto treasury while broader market sentiment remains subdued.
BitMine pushes toward its Ethereum target
BitMine said Monday that it purchased 126,971 Ether for about $207 million last week, increasing its treasury holdings to 5.54 million ETH. The company now controls roughly 4.59% of Ethereum’s circulating supply of 120.7 million tokens, bringing it closer to its goal of accumulating 5% of the network’s outstanding supply.
The aggressive accumulation strategy comes with significant exposure to market volatility. According to DropsTab data, BitMine is currently sitting on nearly $9.9 billion in unrealized losses as Ethereum continues to trade well below its previous highs.
Though the price is falling, Chairman Tom Lee remains bullish about the cryptocurrency. According to him, the current price weakness in no way reflects the fundamentals and potential of Ethereum.
Apart from any profit from price appreciation, BitMine sees several other reasons for investing in the cryptocurrency such as growth through staking, tokenized assets, adoption of stablecoins, and increased institutional engagement. Ethereum may also serve as the base for future digital payment systems.
Tom Lee outlines long-term Ethereum vision
Bloomberg ETF analyst Eric Balchunas made some comments on X about the statements given by BitMine Chairman Tom Lee at DACFP Financial Planner. In his arguments, Lee discussed why blockchain networks have been his long-term bet since the networks present an efficient platform for executing financial transactions due to low costs and verifiable records.
Further, Lee talked about BitMine’s so-called “Alchemy of 5%” strategy, which aims to build a significant stake in Ethereum’s circulating supply. He suggested the company may not need to exceed that threshold if Ethereum’s supply continues to decline over time, potentially increasing the value of existing holdings.
These remarks come at a time when BitMine is seeking to raise more funds to finance its growth initiatives. Recently, the company filed for approval from the U.S. Securities and Exchange Commission to sell shares worth up to $300 million in what will be a preferred stock offering.
Through such a funding move, BitMine is showing how it plans on continuing to build its cryptos despite volatility in the market, thereby placing it among the biggest corporate purchasers of Ethereum.
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