Bitmine Boosts Ethereum Holdings to $8.66B with $69M Purchase

TLDR

Table of Contents

Bitmine now holds nearly 2% of Ethereum’s total supply after a $69M purchase.
The latest acquisition brings Bitmine’s ETH portfolio to $8.66B in total value.
Bitmine’s aggressive ETH accumulation mirrors Michael Saylor’s Bitcoin strategy.
Ethereum remains under pressure despite Bitmine’s continued large acquisitions.

Tom Lee’s Bitmine has strengthened its Ethereum holdings by purchasing an additional $69 million in ETH, boosting its total stash to approximately $8.66 billion. This move brings Bitmine’s holdings to around 2% of Ethereum’s entire supply, making it the largest corporate ETH treasury holder. The purchase was made through Galaxy Digital’s over-the-counter (OTC) desk, following a series of similar acquisitions in recent weeks.

Aggressive Accumulation Strategy by Bitmine

Bitmine’s latest purchase continues its aggressive strategy of accumulating Ethereum. The company has now acquired a total of 2 million ETH, which is valued at over $8.65 billion based on current market prices.

This acquisition has been part of a series of large transactions that have taken place over the past few weeks. For example, Bitmine purchased 46,255 ETH worth $201 million on September 11 and 80,325 ETH worth $358 million just a week earlier.

This acquisition strategy closely mirrors the approach taken by Michael Saylor with Bitcoin. Bitmine has focused primarily on Ethereum, holding nearly all of its portfolio in the cryptocurrency. Other tokens in its portfolio are comparatively small. Ethereum now accounts for the overwhelming majority of Bitmine’s total assets, placing the firm at the forefront of corporate Ethereum treasury holders.

Transaction Structure and Market Impact

The $69 million ETH acquisition was conducted through multiple transactions to prevent disruption in the market. Blockchain transaction records show that Bitmine completed a series of OTC deals in under an hour, ensuring that market prices were not significantly affected by the large purchase.

Such a strategy allows institutional buyers to acquire large amounts of cryptocurrency without influencing market prices, making it a key tactic for large investors.

Despite Bitmine’s growing ETH holdings, Ethereum has faced recent market pressure. At the time of the purchase, ETH was trading at $4,465, which is down 2.8% in the last 24 hours and 4.2% over the past week. While Ethereum’s price is currently under some strain, Bitmine’s consistent buying indicates confidence in the long-term potential of Ethereum.

Bitmine’s Position in the Broader Ethereum Market

Bitmine’s position in the Ethereum market has become increasingly prominent. The company holds more than 2% of Ethereum’s entire circulating supply, surpassing other institutional players like SharpLink Gaming and The Ether Machine. As of now, corporate and institutional entities control about 4.13% of Ethereum’s total supply, with Bitmine leading the way with approximately 2 million ETH.

In addition to its ETH holdings, Bitmine has also made investments into other projects, such as a $20 million strategic investment in Eightco Holdings Inc. This marks the beginning of Bitmine’s “Moonshot” strategy, where it aims to support innovative projects that contribute to the growth and development of the Ethereum ecosystem.

This broad approach, combining large-scale ETH accumulation with investments in ecosystem projects, highlights Bitmine’s strategy of securing a significant stake in Ethereum’s long-term success.

Bitmine’s strategy of amassing Ethereum continues to raise its profile as a major player in the cryptocurrency space. With its ongoing acquisitions and substantial treasury, it is positioning itself as a key player in Ethereum’s future.

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