BitMine Buys Over $800M in ETH, Still Has $219M in Cash to Splash

BitMine, a U.S.-based crypto miner, has displayed unwavering confidence in the world’s second-largest cryptocurrency, ETH, despite recent market uncertainties. As revealed in a recent press release, it acquired about 203,826 ETH last week while the crypto market crumbled and ETH strugged to stand above the $4,000 price range.

BitMine’s Chairman noted in an interview with Ark 21shares CEO, Cathie Wood, that he expects ETH to surpass bitcoin (BTC) by market capitalization, despite the current over $1.7 trillion gap in their total market valuations.

Over $800M Well Spent

Concluding the purchase, BitMine now holds 3,236,014 ETH, which it purchased at approximately $4,022 per ether. At the time of writing, the token trades around 44,030. As such, BitMine’s ETH reserve is worth over $13.04 billion as it solidifies its position as the world’s leading institutional ETH holder.

Notably, the miner plans to purchase 5% of the total ETH supply; thus, its latest purchase is a significant step in line with this goal, as it now holds about 2.7% of ether’s total supply.

Moreover, BitMine holds 192 BTC worth over $21 million by bitcoin’s spot price of $110,500 at press time. It also holds a $119 million stake in Eightco Holdings a Worldcoin (WLD) treasury company. It still has $219 million which it could splash into the crypto market for future ETH buys.

DAT Bubbles Bursting?

In a recent interview with Fortune, BitMine’s Lee noted that a few decetralized asset treasury (DAT) are trading below net asset value (NAV). This includes Japan’s leading bitcoin company, Metaplanet. Thereafter, he asked, “If that’s not already a bubble burst,” Lee asked, “How would that bubble burst?”

However, that has not clouded his optimistic view of ETH as he has led BitMine to its latest ETH shopping spree. Commenting on the company’s most recent strategic purchase, Lee noted, 

“The crypto market saw one of its largest deleveraging events ever last week, and this put downward pressure on ETH prices. This price dislocation represents an attractive risk/reward. We are now more than halfway towards our initial pursuit of the ‘alchemy of 5%’ of ETH.”

Meanwhile, recent analysis suggests the massive ETH acquisition by BitMine and other whales could be the push the token needs to switch to an uptrend in the coming weeks.            

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