TLDR
- BitMine holds over 2.15 million Ethereum tokens worth $9.7 billion, making it the largest corporate ETH holder
- Tom Lee predicts Bitcoin and Ethereum could make a “monster move” in Q4 2024 due to Fed rate cuts
- The company controls nearly 1.8% of Ethereum’s total supply through aggressive accumulation strategy
- BitMine stock has rallied over 1,133% since June following pivot from Bitcoin mining to Ethereum treasury
- Fed rate cuts expected to improve liquidity conditions and drive crypto rally according to Fundstrat analysis
BitMine Immersion Technologies announced Monday it holds $10.77 billion in total crypto assets. The company’s Ethereum position consists of 2.15 million ETH tokens worth $9.7 billion at current prices.
The firm also maintains 192 Bitcoin worth nearly $22 million and $569 million in cash. BitMine owns a $214 million stake in crypto treasury firm Eightco plus other digital assets.
This makes BitMine the world’s largest corporate Ethereum holder. The company controls approximately 1.8% of Ethereum’s entire circulating supply.
Fundstrat co-founder Tom Lee, who chairs BitMine, made bullish predictions for both major cryptocurrencies. Speaking on CNBC Monday, Lee said Bitcoin and Ethereum could make a “monster move” over the next three months.
Lee expects Federal Reserve rate cuts to drive the rally. The Fed is widely expected to cut rates by 25 basis points Wednesday, marking the first reduction since 2023.
“The Fed can actually reinject confidence by saying we’re back into an easing cycle,” Lee explained. He believes rate cuts will create “real improvement in liquidity” conditions.
Corporate Treasury Strategy Success
BitMine follows the corporate treasury model pioneered by MicroStrategy. The software company began buying Bitcoin in 2020 and now holds over 638,000 BTC worth more than $73 billion.
Several Nasdaq-listed companies have adopted similar strategies. These firms purchase various cryptocurrencies including Bitcoin, Ethereum, Solana, and XRP to boost stock performance.
BitMine’s approach has generated massive returns for shareholders. The stock has rallied over 1,133% since late June, trading near $53 per share Monday.
The company pivoted from traditional Bitcoin mining to Ethereum accumulation in May 2024. Lee has stated BitMine aims to acquire 5% of Ethereum’s total supply over time.
Market Conditions Support Rally
Lee compared current conditions to September 1998 when similar Fed actions preceded strong market performance. He described Ethereum as a “growth protocol” benefiting from Wall Street adoption and AI integration.
“Ethereum essentially trades like 1971 Wall Street when the dollar went off the gold standard,” Lee said. The platform serves as infrastructure for financial innovation and tokenized applications.
Consumer sentiment supports Ethereum’s outlook. Nearly 70% of prediction market participants expect ETH to reach $5,000 before falling to $3,500.
Ethereum currently trades above $4,520, up 78% over the past three months. The token has outperformed Bitcoin during this period despite recent volatility.
BitMine’s aggressive accumulation strategy continues as Lee believes Ethereum represents one of the biggest macro trades for the next decade.
