cryptopolitan.com
Today, BitMine Immersion Technologies reported that it has added $321 million worth of Ethereum ($ETH) to its stockpile over the last week.BitMine Chairman Thomas Lee said that the purchase shows stabilizing market conditions following a significant sell-off event earlier this month.
BitMine Immersion Technologies (NYSEAMERICAN: BMNR) stock rose 6.96% to $53.83, up $3.42 from its previous close of $50.41. The stock price oscillated between $51.77 and $53.94 during the day, as Ethereum ($ETH) rebounded to $4,209, up $142.34 or 3.44%.
On-chain data aggregate by Arkham intelligence, BitMine holds 3.313 million Ethereum, worth over $13.8 billion, 192 Bitcoin, worth over $22 million, and $305 million in cash on hand. Over the past week, the organization has added 77,055 $ETH, making it the largest Ethereum treasury company to date. The NYSE American-traded firm is the second-largest cryptocurrency treasury overall, after Strategy, which has more than $73 billion in Bitcoin.
BitMine links the $ETH surge to global factors
Ethereum has been experiencing a recent surge, along with the rest of the crypto market. $ETH price increased by 3% in the past week to a current price of $4,209. CoinGecko data reveals that $ETH surged to $4,246 overnight, the highest level recorded in the previous two weeks.
Thomas J. Lee, the chairman of BitMine and co-founder and head of research at Fundstrat Global Advisors, attributed $ETH’s recent upswing to increased trade relations between the U.S. and Canada after a sharp decline and crypto market plunge earlier this month.
“The progress in trade talks between the U.S. and China is a positive for Ethereum and crypto broadly. These are global assets, and rising tensions triggered the largest ever deleveraging in crypto a few weeks ago.”
Thomas J. Lee, Chairman of BitMine and co-founder and Head of Research at Fundstrat Global Advisors.
Lee claimed that although $ETH’s and crypto market fundamentals are “uncorrelated” with stocks, Fundstrat’s research over the last 15 years has demonstrated that $ETH generally performs better when stocks increase. He added that the rise in stocks indicates that the crypto market is correlated with “risk-on” assets through the related leverage channel.
BitMine strengthens institutional confidence in $ETH
On October 10, BitMine made headlines when it paid around $103.68 million for 23,823 Ethereum. The substantial investment demonstrated a longer-term outlook for the entire market, despite short-term price fluctuations.
Tom Lee claimed that $ETH will be a key component of blockchain adoption. He said that the recent acquisition of the company aligns with a broader discourse around institutional confidence. BitMine demonstrated that institutional players are adopting a longer-term perspective, focusing more on structural growth and technological advancements.
BitMine stated that it plans to push $ETH’s financial industry maturation and amass 5% of $ETH’s total supply. Additionally, BitMine stated that the purchase demonstrates institutional holders’ high level of confidence in Ethereum’s long-term prospects.
Companies increasing their Ethereum holdings are becoming increasingly popular. Strong spot $ETH inflows and institutional interest have made major contributions to corporate treasuries this summer. Rival SharpLink Gaming declared that it had recently acquired 39,008 $ETH, bringing the total amount of $ETH held by the company to 837,230.
The total amount of Ethereum ($ETH) held in treasuries by publicly traded corporations is worth approximately $18.22 billion.
As previously reported by Cryptopolitan on September 6, BitMine increased its treasury by $358 million, solidifying its position as one of the biggest institutional Ethereum investors. The $358 million infusion further fueled $ETH’s price rally.
BitMine received two large $ETH transfers from Galaxy Digital and FalconX, bringing its total holdings to 1,947,299 $ETH, valued at approximately $8.69 billion. These transfers added roughly 80,000 $ETH to BitMine’s wallets.