- Tom Lee-linked Bitmine spent $800 million on its Ethereum purchases last week.
- The company now controls 3.24 million ETH, comprising 2.7% of Ether’s circulating supply.
- Bitmine believes ETH is a better investment than gold.
Bitmine Immersion Technologies, a blockchain technology company in the US, announced its latest 200,000 Ethereum (ETH) acquisition last week. The purchase came at a tune of around $800 million as the token fluctuated between a $3,678 low and $4,214 high.
Bitmine Controlling 2.7% of Ethereum’s Supply
According to a press release on Sunday, Bitmine’s recent accumulation pushes its ETH treasury to 3.24 million, making up 2.7% of the token’s circulating supply. The company’s chairman, Thomas “Tom” Lee (also co-founder of Fundstrat), claimed the business is already halfway to its initial target of capturing 5% of Ethereum’s token supply.
The latest development elevates Bitmine’s combined holdings to $13.4 billion. Besides ETH, its assets include a 192 Bitcoin (BTC) portfolio, $119 million equity stake in Eightco Holdings (ORBS), and $219 million unencumbered cash.
Ethereum: A Better Investment Than Gold
Contrary to Schiffgold Chair Peter Schiff’s constant tirade against crypto in favor of gold, Bitmine believes cryptocurrencies, especially Ethereum, have become “better investments than gold.” ETH in particular has more uses than a store of wealth because it can generate yields through staking and offers programmability.
Ethereum’s shift from a Proof of Work (PoW) to a Proof of Stake (PoS) consensus mechanism allows holders to generate a passive income stream by locking up their dormant ETH holdings to secure its network in exchange for token rewards. They can further boost their passive income by pooling their ETH assets into sophisticated decentralized finance (DeFi) strategies.
Lee Warns About Fading Hype on DATs
Interestingly, Bitmine’s acquisition came as Lee warned that the excitement around digital asset treasuries (DATs) is already cooling in an interview. Due to the significant market corrections, especially during the major crypto market liquidations in the past couple of weekends, he claimed many of them are already trading at exactly within the line or below their Net Asset Value (NAV). This echoed the same sentiment 10x Research aired on Friday.
Despite these, Lee expressed his conviction in Ethereum due to its solid fundamentals. Moreover, he assured the investing public that Bitmine is still operating at a slight premium to its holdings.
Furthermore, Lee revealed that the recent market dips offered a lower entry point in many crypto assets, thus justifying Bitmine’s sizeable ETH purchases lately. For the industry expert, the “price dislocation represents an attractive risk/reward.”
What’s your Reaction?
+1
0
+1
0
+1
1
+1
0
+1
0
+1
0
+1
0
