Crypto-sector investors showed a strong preference for digital asset treasuries (DATs) on Monday, with these specialized stocks experiencing a significant surge that outpaced the broader cryptocurrency market.
BitMine Immersion Technologies emerged as a frontrunner among major digital asset treasuries, boasting a nearly 20% stock surge on Monday, according to data from Google Finance. Its share prices climbed from just below $27 to surpass $31 by the close of the trading day, maintaining these gains in after-hours trading as Ether (ETH) prices experienced an upward trend.
BitMine stock (BMNR) had been on a downward trajectory since the crypto market's peak in early October, having shed 50% of its value. Nevertheless, despite these recent losses, the stock remains up by an impressive 630% since the company initiated its Ether accumulation strategy in late June.
SharpLink Gaming (SBET), the second-largest Ether DAT, also witnessed a rise in its stock value on Monday, adding nearly 6% for the day as its share prices exceeded $10. Concurrently, Michael Saylor’s Strategy (MSTR) saw a 5% increase, reaching $179 by the end of the trading session.
Macro investor Ted Pillows commented on the trend, stating, "Ethereum treasury companies are showing no signs of a bottom. A reversal in these stocks will start a major reversal in ETH."
The recovery observed in DAT stocks has been more robust than that of the broader crypto market, which has seen a total capitalization gain of 2.1% over the past 24 hours.
BitMine Accumulates Significant Ether Holdings
Digital asset treasuries have demonstrated a consistent strategy of holding and accumulating assets during market corrections, in contrast to retail traders who have engaged in panic selling.
As a result of this strategy, BitMine has achieved a significant milestone, now holding 3% of the total Ether supply. Chairman Tom Lee noted on Monday, "It is two-thirds on the way to the ‘Alchemy of 5%'."
The company currently possesses 3.63 million ETH, valued at approximately $10.6 billion, according to StrategicEthReserve. In a company announcement on Monday, it was revealed that BitMine acquired an additional 69,822 ETH last week, effectively buying the dip.
Institutional investment in BitMine has also seen a substantial increase. Citing Nasdaq figures, ‘BMNR Bullz’ reported that institutional ownership of BitMine has surged dramatically from 6% to 31.7% within a mere 13-day period.
Ether Prices Show Slow Recovery
Ether prices have experienced a gain of around 3% over the last 24 hours, reaching an intraday high of $2,980 during late trading on Monday. However, the asset encountered resistance at this level and has slightly retreated in the subsequent hours.
ETH was significantly impacted by the market downturn in November and remains down 41% from its all-time high of $4,946, which was set in August.
Lee commented on the broader market sentiment, stating, "The continued decline in crypto prices in the past week reflects the impaired liquidity since October 10th, as well as price technicals, which remain weak."