BitMine Grows Its Treasury by Buying a Lot of Ethereum
BitMine Immersion Technologies recently bought a lot more Ethereum. Last week, the company bought 45,759 ETH. At current market prices, the purchase is worth about $91 million.
The company’s total holdings now exceed 4,370,000 ETH. Even though prices have gone down recently, the stash is still worth about $8.68 billion. Ethereum has dropped more than 60% since it reached its highest point in August of last year.
Tom Lee Highlights Three Secular Forces Driving Ethereum Growth
Chairman Tom Lee is still hopeful about the future of Ethereum. He talked about ideas that came up at the Consensus Hong Kong conference. These include enterprise adoption through tokenization and privacy apps.
He also thinks that Ethereum will be used for payments and verification by AI systems. Creative industries that use identity standards on layer 2 networks add to the demand. Lee thinks that Ethereum’s neutrality and uptime give it an edge over other cryptocurrencies.
Treasury Position Remains Deeply Underwater After Market Correction
BitMine’s Ethereum holdings show losses of more than $7 billion that have not yet been realized. The company gave information about its cost basis in regulatory filings in late November. Estimates were used for purchases made after that reporting period.
The company has 193 Bitcoin worth about $13 million in addition to Ethereum. The company’s cash reserves are about $670 million. $200 million put into Beast Industries recently is an example of a strategic investment.
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Investments Extend Toward Identity And Layer Two Ecosystems
Eightco Holdings got $17 million from BitMine. That business is good at collecting Worldcoin-related assets. The main focus is on identity verification technologies that work on Worldchain infrastructure.
Lee’s vision for proof of human systems is in line with these investments. Many new decentralized identity apps are built on Ethereum-based verification standards. BitMine is ready to take advantage of the ecosystem’s growth in a big way.
Market Sentiment Looks Like Previous Cycle Lows
After big drops, crypto markets show a clear drop in investor confidence. Bitcoin is trading at almost half of its all-time high of over $126,000. This quarter, major altcoins have had similar pullbacks.
Lee said that the mood right now is like the late-cycle despair of 2018 and 2022. He pointed out that there haven’t been any big corporate failures during this downturn. Instead, weakness keeps going after the price shock and deleveraging events in October.
Prediction Markets Remain Bearish On Ethereum’s Path Forward
People who use Myriad think that Ethereum will go down more in the near future. Probability forecasts say there is a 68% chance that it will drop to $1,500. Predictions say that the chances of getting back $3,000 before more drops are lower.
These hopes are in line with a general trend of risk aversion in the sector lately. Traders are still being careful because liquidity is getting tighter and speculative momentum is slowing down. Uncertainty about the structure makes short-term participants even more hesitant.
BitMine Continues Accumulating ETH Despite Downward Pressure
Lee said again that the company plans to stick with its acquisition strategy. He made it clear that the timing of the market does not change the overall plan. People buy Ethereum no matter what happens in the short term or how they feel about it.
Long-term conviction guides how the treasury program makes decisions. BitMine thinks that the current market is just a short winter phase. The people in charge think that Ethereum’s long-term outlook is still strong.
