BitMine Immersion Technologies (BMNR) has become the defining Ethereum (ETH-USD) treasury story of this cycle. Chairman Tom Lee is steering the company toward one of the most aggressive ETH accumulation strategies ever attempted by a public firm, and the scale of that bet is now reshaping how investors view BMNR.
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With more than 3.55 million ETH in its reserves and total crypto plus cash now sitting at $11.8 billion, BitMine is building toward what could eventually become a $20 billion Ethereum treasury if it reaches its goal of owning 5 percent of all ETH. This size of this holding is unusual for a public company and is a big reason why BMNR has started to stand out to large investors.
BitMine Expands Its Ethereum Treasury
BitMine reported 3,559,879 ETH, worth roughly $3,120 per token, along with 192 Bitcoin, a $37 million position in Eightco (ORBS), and $607 million in unencumbered cash. This solidified its position as the world’s largest Ethereum treasury and the second largest digital asset treasury behind Strategy Inc (MSTR).
The firm now owns 2.9 percent of all ETH in circulation and said it has crossed the halfway mark toward its internal goal, which Lee calls the “Alchemy of 5 percent.”
Lee Explains the Current Crypto Weakness
In his November message, Lee addressed why crypto prices remain under pressure after the October 10 wipeout.
“Crypto prices have not recovered since the liquidation event on Oct 10th. And the lingering weakness has the hallmarks of a market maker (or two) suffering from a crippled balance sheet.”
Lee said a damaged player appears to be pulling liquidity across markets. “When a market maker has a ‘hole’ on their balance sheet, they are seeking to raise capital and are reducing their liquidity functions in the market. This is the equivalent of QT for crypto and has the effect of dampening prices. In 2022, this QT effect lasted for 6-8 weeks. And this is probably happening today.”
Despite that pressure, Lee said the cycle is not close to a top. He expects the major crypto peak to arrive 12 to 36 months from now.
BitMine Highlights Tailwinds for Ethereum
BitMine pointed to several drivers behind its long-term ETH strategy. These include the upcoming Fusaka network upgrade, the growth of stablecoins and the acceleration of tokenization on Ethereum.
“Tokenization is a major unlock for asset markets as it is more than just fractionalization or 24/7 liquidity,” Lee said. He argued that tokenization brings transparency and enables new financial products based on time, geography and asset type.
BitMine Strengthens Its Standing among Crypto Equities
BitMine also emphasized its deep pool of institutional backers, which includes ARK’s Cathie Wood, Founders Fund, Pantera, Kraken, Galaxy Digital (GLXY), and individual investor Tom Lee.
Trading activity in the stock has risen sharply. BMNR now averages $1.4 billion per day in dollar volume, making it the 48th most-traded stock in the United States.
The company said the fourth quarter is typically strong for both crypto prices and crypto equity volumes, and expects trading activity to improve as open interest recovers.
At the time of writing, Ethereum is sitting at $3,082.32.
