Mining Company Acquires over 15,000 Ether, Significantly Boosting Total Reserve to 1.95 Million Ether
In a move reminiscent of Michael Saylor's strategy at MicroStrategy, crypto firm Bitmine, helmed by Wall Street veteran Tom Lee, has made a significant purchase of Ethereum (ETH). The company acquired 15,427 ETH, worth approximately $69 million, pushing its total Ethereum holdings over the 2 million mark.
The purchase was facilitated through Galaxy Digital's over-the-counter (OTC) desk. This latest buy has catapulted Bitmine to become the largest corporate Ethereum treasury, surpassing competitors like SharpLink Gaming and The Ether Machine.
Bitmine's Ethereum holdings now represent about 1.8% of Ethereum's circulating supply. The company's other portfolio assets, such as MakerDAO's MKR and experimental tokens, are minimal compared to their Ethereum holdings.
According to Arkham data, the total value of Bitmine's Ethereum holdings is now roughly $8.66 billion. This aggressive approach towards Ethereum resembles a long-term treasury reserve strategy, a move that analysts believe could increase the long-term value of Ethereum over Bitcoin.
The blockchain records show a series of large transfers within a short period of time, including transfers of 3,247 ETH, 3,258 ETH, 4,494 ETH, and 4,428 ETH. These transfers highlight coordinated OTC settlements that allow institutions to buy large amounts without affecting open-market prices.
While SharpLink Gaming is the second-largest Ethereum holder with around 837,000 ETH, Bitmine's holdings of approximately 1.78 to 2.1 million ETH place it as the largest Ethereum holder. SharpLink Gaming claims undervaluation in their recent purchase.
Ethereum is currently trading at $4,477. Despite prices remaining under pressure, ETH-focused firms are well-positioned for growth. In the last 24 hours, Ethereum has fallen by 1.5%, and in the last week, it has decreased by 5.2%.
This aggressive accumulation of Ethereum by institutions could signal a growing confidence in the cryptocurrency's long-term potential. Analysts believe that Ethereum treasuries will gain staking yields, increasing the long-term value of Ethereum over Bitcoin. However, it's important to note that no new information about other portfolio assets of BitMine or other institutional Ethereum holders with more than 1 million ETH is available at this time.
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