Bitmine Immersion Technologies added $195 million worth of Ethereum to its stockpile last week as the stock fell to a four-month low, according to a report on Monday. press release.
Although the value of BitMine’s Ethereum holdings has plummeted recently, the company said it currently owns 3% of the total asset supply (equivalent to 3.63 million Ethereum). The company’s reserves were valued at $10.1 billion based on current prices.
Bitmine stock rose 10% on Monday to $28. However, the company’s stock remains down 43% in the last month, after falling to $24.33 last week, according to Yahoo Finance. Several crypto buying companies, including Strategy, are also facing similar declines.
The amount of Ethereum owned by BitMine increased by 1.9% from the previous week, and the acquisition of 69,822 Ethereum was the second smallest purchase this year. The company added 373,000 Ethereum to its stockpile at times.
CoinShares head of research James Butterfill said the acquisition may be small, but it still comes at a bold time. decryption Cryptocurrency purchasing companies are facing increased scrutiny as market capitalization tilts toward the value of digital assets, the report said.
“This is a pretty bold move given the sentiment[against crypto finance companies]at the moment,” he said. “It suggests they are looking for strategic timing from a pricing perspective.”
In a press release, BitMine did not explain how the latest acquisition was financed, but reported that unencumbered cash increased from $607 million to $800 million. The company still held 192 Bitcoins, plus $38 million in stock in a crypto treasury company tied to WorldCoin.
decryption has reached out to BitMine for comment.
The company highlighted its efforts to establish a network of Ethereum validators. repeat This infrastructure is expected to be in place early next year.
BitMine chairman and Fundstrat co-founder Tom Lee acknowledged in a statement the “continued decline in crypto prices,” which he said led to a historic wave of liquidations that forced the termination of $19 billion worth of leveraged crypto trades.
Ethereum price fell to a four-month low of $2,680 last week, according to crypto data provider CoinGecko. After recouping some losses this weekend, Ethereum price has recently been hovering around $2,859, marking a 2.2% increase over the past day. In a myriad of prediction markets, only 32% of respondents believe Ethereum will jump to $4,000 in the next big move, and this trendline highlights the recent pessimism towards the asset. Myriad is a division of Dastan, the parent company of editorially independent companies. decryption.
Lee said that although the price of Ethereum has fallen, it may not fall any further.
“A few weeks ago, we indicated that the downside potential for ETH price could be around $2,500, and currently ETH price is basically there,” he said. “While this is an upcoming supercycle for Ethereum, the downside is between 5% and 7%, meaning the risk and reward are asymmetric.”
