The non-profit group that helps run the Ethereum (ETH-USD) network moved about $23 million worth of digital coins to a company called BitMine Immersion Technologies (BMNR) on Friday. This transaction marks the second week in a row that the organization has sold 10,000 ETH to this specific partner.
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Ethereum Foundation Supports Development
Specifically, the foundation sold the ETH tokens at an average price of $2,292 each. Additionally, these funds are used to pay for the essential work required to keep the network healthy and growing. This includes paying for research, building new technology, and giving money to community projects.
In a public message, the organization stated, “This sale funds the Ethereum Foundation’s core operations and activities, including protocol R&D, ecosystem development, community grant funding and more.” Furthermore, this is actually the third time since March that the group has sold coins to BitMine to cover these costs.
BitMine Acquires Assets
Moreover, this recent purchase is a major part of a larger plan for BitMine, which is led by Chairman Tom Lee. The firm currently stands as the biggest holder of Ethereum coins in the corporate world. Just this week, the company revealed it had bought more than 100,000 ETH in total, which helped push its entire stash past a massive 5 million coins.
As of Monday, the total value of their digital treasure was estimated at over $11.7 billion. This aggressive buying strategy has made them a dominant player in the market, even as prices change daily.
Ethereum Price Drops Create a Paperweight for Buyers
Meanwhile, the broader market has been difficult for big buyers because the price of Ethereum has fallen significantly from its all-time high of $4,946 seen last summer. Because of this large drop, BitMine is currently looking at a paper loss of more than $6.3 billion. This means the coins they hold are worth much less than what they originally paid for them.
Even with this gap in value, BitMine’s stock price went up by 1.75% on Friday. Over the last month, the stock has grown by 10%, showing that investors still have confidence in the company’s long-term plan.
Is BitMine Stock a Good Buy?
Turning to TipRanks, BMNR stock has a Moderate Buy consensus rating based on one Buy rating from an analyst assigned in the last three months. The average 12-month BMNR price target sits at $33, implying an upside potential of 47.7%.
