TLDR
- BitMine bought 202,037 ETH worth approximately $827 million during the weekend market crash at an average price of $4,154 per token
- The company now holds over 3 million ETH, with total assets of $13.4 billion including crypto, cash, and a stake in Eightco Holdings
- Chairman Tom Lee stated BitMine is now more than halfway toward its goal of acquiring 5% of ETH’s total supply
- The purchases came after a $19 billion liquidation event triggered widespread selling across crypto exchanges
- BitMine stock (BMNR) fell 10% over five days despite the buying spree, following a short position report from Kerrisdale Capital
BitMine Immersion Technologies bought more than 200,000 ETH during the weekend market downturn. The company paid an average of $4,154 per token for the purchase.
The total acquisition was valued at about $827 million. BitMine called this an “opportunistic accumulation phase” during market turmoil.
The purchase came after a sharp $19 billion liquidation event hit crypto markets. The selling pressure spread across major crypto exchanges over the weekend.
BitMine chairman Tom Lee said the company took advantage of the price decline. Lee also serves as head of research at Fundstrat.
“The crypto liquidation over the past few days created a price decline in ETH, which BitMine took advantage of,” Lee stated. He said volatility can cause assets to trade at discounts to fundamentals.
BitMine is now the world’s largest corporate holder of Ethereum. The company’s total holdings exceed 3 million ETH.
Total Holdings Reach $13.4 Billion
BitMine’s combined assets now total approximately $13.4 billion. This includes $12.9 billion in cryptocurrency holdings.
The company also holds $104 million in cash. BitMine owns a $135 million stake in Eightco Holdings, a Worldcoin treasury company.
BitMine also maintains bitcoin holdings in addition to its Ether position. The firm operates bitcoin mining business lines alongside its treasury operations.
Lee said the company reached a key milestone with these purchases. “We are now more than halfway towards our initial pursuit of the ‘alchemy of 5%’ of ETH,” he said.
The total supply of ETH currently stands at more than 120 million tokens according to Coingecko. BitMine’s goal is to acquire 5% of that supply.
Stock Price Drops Despite Purchases
BitMine shares traded under the ticker BMNR fell 10% over five days. The decline occurred despite the company’s large ETH purchases.
BMNR was the 22nd most traded stock on U.S. markets as of October 10. The stock had a five-day average trading volume exceeding $3.5 billion.
The stock decline followed a report from Kerrisdale Capital. The firm took a short position against BitMine and criticized its business model.
Kerrisdale described the company as “on its way to extinction.” The short position report contributed to selling pressure on the stock.
However, BMNR traded at $54.86 on Monday morning, up roughly 4.3% from the market open. ThinkEquity analyst Ashok Kumar initiated coverage with a Buy rating and $60 price target.
BitMine remains one of a growing number of digital asset treasury companies that trade on public markets. The company plans to continue accumulating ETH during market corrections.
