TLDR
- BitMine purchased 23,823 ETH tokens worth $103.7 million according to onchain tracking data from Lookonchain
- The company holds 2.83 million ETH valued at $12.4 billion, making it the largest corporate Ethereum holder globally
- Kerrisdale Capital publicly announced shorting BMNR stock, calling digital asset treasury companies outdated
- BMNR shares dropped 4.7% following the short announcement, closing at $56.90 on October 9
- Tom Lee’s BitMine aims to own 5% of total Ethereum supply despite growing market criticism
BitMine Immersion Technologies added 23,823 ETH worth $103.7 million to its corporate treasury on Thursday. Onchain data from Arkham Intelligence tracked the transfer from a BitGo wallet to an address linked to BitMine.
Lookonchain reported the transaction, though BitMine has not officially confirmed the purchase. The company did not respond to requests for comment.
With this acquisition, BitMine’s total holdings reach 2.83 million ETH. At current prices, that equals roughly $12.4 billion in Ethereum.
The company also holds 192 Bitcoin valued at over $23 million. This positions BitMine as the second-largest crypto treasury company after Michael Saylor’s Strategy.
Tom Lee, who co-founded research firm Fundstrat, leads BitMine. The company has publicly stated its goal to accumulate 5% of Ethereum’s total circulating supply.
Investment Firm Shorts BitMine Stock
Kerrisdale Capital announced its short position on BMNR stock on October 9. The investment firm released a detailed explanation for betting against the company.
Kerrisdale argues that digital asset treasury companies no longer offer value to investors. The firm points to the proliferation of Ethereum ETFs and easy direct purchasing options.
“The DAT playbook has become basic & unoriginal,” Kerrisdale stated in its announcement. The firm emphasized it is not bearish on Ethereum itself.
Instead, Kerrisdale questions why investors should pay a premium for indirect Ethereum exposure. The firm recommends buying ETH directly, staking it, or using one of many available ETFs.
Kerrisdale believes BitMine cannot sustain trading above the value of its actual Ethereum holdings. The firm said the digital asset treasury model worked when few public options existed for crypto exposure.
Stock Drops Following Short Announcement
BMNR stock fell 4.7% on October 9 after Kerrisdale’s public short position. Shares closed at $56.90 that day.
The stock continued sliding, dropping another 1.5% on Thursday to close at $59.10. Despite recent declines, BMNR remains up approximately 30% over the past month.
Ethereum prices also declined, trading down 1.4% over 24 hours to $4,384. The broader crypto market saw similar modest losses during this period.
Comparing Leadership Styles
Kerrisdale’s report compared Tom Lee’s leadership to Michael Saylor’s approach at Strategy. While acknowledging Lee’s credentials as a market strategist and media personality, Kerrisdale said he lacks Saylor’s devoted investor following.
The firm noted that digital asset treasury companies benefited early investors when options were limited. “That moment is long gone,” according to Kerrisdale’s analysis.
The market now features numerous identical treasury companies and multiple Ethereum ETFs. Kerrisdale argues this saturation eliminates the premium investors previously paid for exposure.
BitMine received the latest ETH transfer through address “0xF8c…338E7” from a BitGo wallet. The transaction adds to the company’s ongoing strategy of building its Ethereum position despite facing criticism from traditional investment firms about its business model sustainability.
