BitMine Immersion Technologies (BMNR) Chairman Tom Lee has characterized the recent dip in Ether's price as a "price dislocation" and a signal to buy, following a week in which his company purchased 203,800 ETH for roughly $820 million. This acquisition brings BitMine's total Ether holdings to 3.24 million, representing approximately 2.7% of the total circulating supply.
Lee's optimistic outlook comes after a significant deleveraging event in the crypto market that put downward pressure on ETH prices. He noted that open interest for ETH is at similar levels to those seen on June 30th of this year, when ETH was trading at $2,500. "Given the expected Supercycle for Ethereum, this price dislocation represents an attractive risk/reward," Lee stated.
BitMine's aggressive accumulation of Ether is part of a broader strategy to reach what they call the "Alchemy of 5%," aiming to control 5% of the total ETH supply. The company views Ethereum as a "truly neutral" chain poised for increased institutional adoption, justifying its long-term investment.
The recent purchase has further solidified BitMine's position as the largest digital asset treasury company focused on Ethereum. In addition to its ETH holdings, BitMine possesses 192 Bitcoin, $219 million in cash, and $119 million in equity of Eightco Holdings, bringing their total crypto and cash holdings to $1.34 billion. When including "moonshot" equity investments, BitMine's total holdings reach $13.4 billion. This positions them as the second-largest corporate crypto treasury globally, behind only Michael Saylor's Strategy Inc.
The news of BitMine's increased Ether holdings and Lee's positive outlook have been well-received by the market. BitMine's stock (BMNR) experienced an 8% surge following the disclosure. The company's stock is also ranked 33rd among U.S. equities by trading volume, reflecting growing investor interest in crypto-linked corporations.
BitMine's strategy is supported by a group of institutional investors, including ARK's Cathie Wood, MOZAYYX, Founders Fund, Bill Miller III, Pantera, Kraken, DCG, and Galaxy Digital. The company's focus remains on long-term investment in the Bitcoin and Ethereum networks. As of October 19th, BitMine's ETH holdings were valued at $4,022 per ETH.
