Key Insights
- BitMine now holds over 1.15 million ETH, which is worth nearly $4.96 billion.
- The company increased its ETH holdings by $2 billion in just one week, according to speculators.
- Major investors, including Peter Thiel and Cathie Wood’s ARK Invest, have increased their stakes in the firm.
BitMine Immersion has expanded its Ethereum holdings to more than 1.15 million tokens. Combined, this stash is worth over $4.96 billion and has secured BitMine’s position as the largest corporate ETH treasury in the world.
BitMine also stands as the third-largest crypto treasury overall, which is behind only MicroStrategy and Mara Blockchain.
The company’s accumulation spree has been impressive so far. Just last week, it reported 833,137 ETH worth $2.9 billion. This means that in seven days, it added 317,000 ETH, worth about $2 billion, to its reserves.
The Ongoing Growth in the ETH Strategy
BitMine launched its ETH treasury strategy on June 30. In just five weeks, the firm has seen a massive rate of growth as the company says it is planning to buy as much as 5% of Ethereum’s total supply.
This target, it believes, will cement its status as a leader in crypto treasury management.
According to its Chairman Thomas “Tom” Lee (who also co-founded Fundstrat), the limited nature of the ETH supply could massively boost the cryptocurrency’s value over time.
Institutional Backing Boosts Confidence
BitMine’s aggressive buying has attracted strong interest from major institutional investors. For example, Billionaire venture capitalist Peter Thiel increased his stake in July to over 9% and now owns more than 5.09 million shares.
Cathie Wood’s ARK Invest has also been an active buyer. ARK’s ETFs collectively purchased $22.8 million in BitMine shares on July 28, which included 401,318 shares by ARK Innovation ETF (ARKK), 128,048 shares by ARK Next Generation Internet ETF (ARKW), and 43,487 shares by ARK Fintech Innovation ETF (ARKF).
These purchases came right after ARK’s earlier $182 million investment in the company.
Stock Performance Reflects Investor Optimism
BitMine’s stock (NYSE: BMNR) jumped 12% on Monday after the latest ETH holdings announcement. This means that since the start of the year, its share price has surged 634%, according to Google Finance.
The stock has also become one of the most actively traded in the United States. Fundstrat data even shows an average daily dollar volume of $2.2 billion over the five trading days ending August 8.
In summary, this places BitMine ahead of giants like JPMorgan and Micron Technology.
Market Conditions Favour ETH Accumulation
BitMine’s chairman, Tom Lee, believes Ethereum is entering a phase that is similar to Bitcoin’s breakout in 2017.
He pointed out three factors that have been driving ETH’s growth so far. These include the regulatory approval for stablecoins, the SEC’s favour for on-chain finance, and the rise in adoption by major firms like JPMorgan and Robinhood.
Lee believes that ETH could rise from its current $4,189 to as high as $30,000 if these trends continue. As of writing, Ethereum is about 14% below its all-time high.
According to data from DefiLlama, the total corporate ETH treasuries have now raked in more than $10 billion, with BitMine leading the charge.
Competitors like SharpLink Gaming and Bit Digital are also building their holdings. However, none have matched BitMine’s rate or size of accumulation.
The firm has now held its position as the largest ETH treasury. This could do much to influence the market’s liquidity in the future, as well as institutional adoption.
This is especially if it hits its goal of controlling 5% of Ethereum’s supply.
