BitMine’s Shopping Frenzy: Capitalizing on Ethereum’s Downfall with $1.5B Investment

BitMine’s significant acquisition and a series of public alerts have left markets observing Ethereum intently this week. Considerable actions were taken during the sell-off, and corporations and investors are now contemplating whether those acquisitions indicate assurance or merely a wager on a recovery.

Widespread Accumulation Persists

As per onchain insights from Arkham Intelligence and the tracker ‘BMNR Bullz’, BitMine Immersion Technologies acquired a total of 379,271 ETH through three distinct transactions: 202,037 ETH following the weekend slump, 104,336 ETH on Thursday, and 72,898 ETH on Saturday.

Reports have indicated that the total haul is valued at nearly $1.5 billion. These acquisitions have not been officially verified by BitMine, but the transactions were traceable on public ledgers.

BitMine’s Stance And Timing

It is reported that BitMine possesses over 3 million ETH, which corresponds to roughly 2.5% of the total supply, and that reserve was estimated at about $11.7 billion at current market rates.

According to reports, the firm aims to reach 5% of the supply and only commenced building its treasury early in July when Ether hovered around $2,500.

Tom Lee from Fundstrat has also been accumulating — he mentioned acquiring $1.5 billion worth of Ether since the market downturn — indicating that some major players foresee long-term advantages.

Concerns Raised Regarding DAT Pricing

Reports suggest Lee cautioned that the excitement surrounding digital asset treasuries, or DATs, might be diminishing, with several DATs trading at or beneath their net asset value (NAV).

Research firm 10x Research indicated that numerous prominent DATs were trading close to or below NAV. This has prompted investors to inquire whether the trading discounts signify enduring issues or a brief market adjustment.

Huobi founder Li Lin is said to be raising approximately $1 billion to invest into an Ether treasury, indicating that certain firms still seek exposure despite the low trading prices.

Optimistic Perspectives Amid Market Pressure

Lee indicated that Ethereum could “surpass” Bitcoin in a manner he likened to how Wall Street and equities eclipsed gold after 1971. He also cautioned that investors are still “tending to their wounds” from an unprecedented leverage flush.

Markets have declined 15% from the high on October 7, while gold has dipped about 3% from its peak. These movements are influencing where significant holders place their investments.

Network Stress

Meanwhile, based on social media posts and blockchain analytics, Kevin O’Leary raised alarms about congestion on Ethereum after fees escalated during the sell-off.

He noted that straightforward transactions temporarily incurred fees of up to $1,000, drawing attention to limitations in accommodating sudden demand.

Etherscan data indicated average daily gas prices reached a nine-month high last Friday, corroborated by market observers.

Featured image from Unsplash, chart from TradingView

Editorial Process for bitcoinist is focused on providing thoroughly researched, precise, and impartial content. We maintain stringent sourcing standards, and each page undergoes careful review by our team of leading technology specialists and seasoned editors. This process ensures the trustworthiness, significance, and quality of our content for our audience.