Major Acquisition Bolsters Ethereum Treasury
BitMine Immersion has announced the acquisition of 77,055 Ethereum, a move valued at approximately $319 million based on current market prices. This substantial purchase brings the company's total Ethereum holdings to over 3.3 million tokens, with an estimated value of around $13.7 billion. The NYSE American-traded company disclosed this significant addition to its portfolio in an announcement made on Monday, following an earlier update on October 20.
Comprehensive Asset Portfolio
As of October 26, BitMine's total holdings, encompassing both cryptocurrency and cash, reached an impressive $14.2 billion. Beyond its substantial Ethereum reserves, the company also possesses 192 Bitcoin, valued at $22.2 million. Additionally, BitMine holds an $88 million stake in the treasury firm Eightco and maintains $305 million in unencumbered cash.
Dominant Position in Ethereum Treasury
The company's current Ethereum holdings represent nearly 2.8% of Ethereum's circulating supply, which is currently estimated at approximately 120.7 million Ethereum. BitMine firmly holds the position of the largest Ethereum treasury among publicly traded companies by a considerable margin. Its holdings more than triple those of its closest competitors: Joe Lubin's SharpLink, which holds roughly 859,400 Ethereum, and The Ether Machine, with approximately 496,710 Ethereum.
Second Largest Public Crypto Treasury
Overall, BitMine ranks as the second-largest public company in terms of crypto treasury holdings. It trails only Michael Saylor's Strategy, which manages 640,808 Bitcoin valued at $74 billion, following its recent acquisition announcement on Monday. Strategy's Bitcoin holdings account for over 3% of Bitcoin's total supply of 21 million coins.
Key Institutional Backers and Future Ambitions
BitMine benefits from the support of prominent institutional investors, including Ark Invest's Cathie Wood, Bill Miller III, DCG, Founders Fund, Galaxy Digital, Kraken, and Pantera. The firm has set an ambitious goal to acquire 5% of the circulating Ethereum supply, which would equate to around 6.04 million Ethereum based on current figures.
Macroeconomic Factors and Market Outlook
Tom Lee, Chairman of BitMine and Managing Partner at Fundstrat, attributed the timing of the acquisition to improving macroeconomic conditions. He noted that progress in U.S.-China trade talks is a positive indicator for Ethereum and the broader cryptocurrency markets. Lee recalled that rising geopolitical tensions had previously triggered a significant deleveraging event in the crypto space several weeks prior.
Lee further emphasized that while Ethereum's intrinsic fundamentals are not directly tied to equities, Fundstrat's extensive 15-year research indicates that Ethereum and other crypto assets tend to perform better when the stock market is rising. This correlation is attributed to the associated leverage channel, which links these assets to risk-on market sentiment. Currently, the open interest for Ethereum is at levels last observed on June 30, when Ethereum was trading at $2,500.
Market Trading Volume and Stock Performance
As of October 24, BitMine has become one of the most actively traded U.S. equities, with an average daily trading volume of $1.5 billion over five days. This volume places the company at 46th nationwide among 5,704 U.S.-listed stocks, positioning it just behind Goldman Sachs in trading activity.
Shares of BMNR experienced a notable increase of over 5% on Monday, closing at $53.15. This rise followed both Ethereum's gains over the weekend and the announcement of the recent purchase. According to Lee, the combined trading volume share of BitMine and MicroStrategy now constitutes 88% of all global DAT trading volume.