BitMine Continues to Purchase Ethereum: 54 Thousand More!

Last week, there was significant volatility in the crypto markets, and BitMine Immersion Technologies purchased over 54,000 Ethereum (ETH), bringing its total holdings to approximately 3.6 million ETH. The company announced that it made a new Ethereum purchase worth approximately 173 million dollars. With this, BitMine's total Ethereum holdings began to represent around 3% of the market's circulation.

BitMine's aggressive purchasing strategy has drawn renewed attention to institutional investments, despite significant price declines in recent times. The company's balance sheet continues to grow; cash reserves increased from 398 million dollars to 607 million dollars within a week. However, despite this, BMNR shares experienced a decline of 2.6%, and the share price fell to its weakest level since August.

Thomas Lee, President of BitMine and co-founder of Fundstrat, stated that the primary reason for the weakness in cryptocurrency prices is the tightening of liquidity. Lee noted that a major market maker may have suffered losses following the significant price drop in October, which led to a decrease in liquidity provisioning capacity. He described this situation as a kind of monetary tightening for the crypto market and recalled that a similar effect in 2022 lasted for about six to eight weeks.

Thomas Lee believes that despite the current decline, a cycle peak has not yet been reached in the crypto market. In a shareholder note in November, Lee expressed that structural factors could push the peak of the cycle to 2026 and beyond. Additionally, he emphasized that the tokenization of assets like stocks, bonds, and real estate on the Ethereum network could create a significant breakthrough for the financial system, and this trend should be closely monitored.