BitMine Immersion, a NYSE-listed Bitcoin miner, announced it bought an additional 96,798 Ethereum (ETH) last week, valued at approximately $265 million at current prices. This purchase increases the company's total Ethereum holdings to 3,726,499 ETH, worth about $10.1 billion, which represents over 3% of Ethereum's total circulating supply. BitMine also holds 192 Bitcoin (BTC) valued at nearly $16 million, bringing its total crypto assets to $12.1 billion.
Despite this significant accumulation, BitMine's stock price plunged 12% on Monday, trading at $29.10 per share after nearing $35 on Friday. Concurrently, Ethereum's price dropped by 9.7% over a 24-hour period, reaching around $2,745 per coin. BitMine paid an average of $3,008 per ETH for its recent purchase, with the asset now 45% below its August record high of $4,946.
Tom Lee, Chairman of BitMine Immersion and Managing Partner at Fundstrat Global Advisors, commented on the market conditions, stating, "We are now more than seven weeks past the October 10th liquidation shock event, meaning the crypto market has found its bearings again." He added that positive tailwinds for ETH prices prompted the company to increase its weekly Ethereum purchases by 39%.
The news comes amid a broader crypto market correction. Bitcoin's price fell 7% in the past 24 hours to approximately $85,000, down nearly 15% year-to-date and 32% from its early October record above $126,000. Other crypto treasuries, such as Strategy, have also seen declines, with Strategy forming a $1.44 billion reserve to smooth dividends but not ruling out potential BTC sales.
Institutional investors like ARK Invest and Pantera Capital support BitMine's strategy, which aims to bridge traditional financial markets with the Ethereum ecosystem. However, liquidity concerns have been raised by other firms. A Myriad prediction market indicated that over 76% of respondents forecast Ethereum could drop to $2,500 in its next major move.
