BitMine Continues to Buy Ethereum: 54 Thousand More!

Last week, significant activity occurred in the crypto markets as BitMine Immersion Technologies purchased more than 54,000 Ethereum (ETH), raising its total holdings to approximately 3.6 million ETH. The company announced that it made a new Ethereum acquisition valued at around $173 million. As a result, BitMine's total Ethereum assets have begun to account for approximately %3 of the circulating supply in the market.

BitMine's aggressive buying strategy has drawn attention to institutional investments again, despite recent sharp price declines. The company's balance sheet continues to grow; cash reserves, which stood at $398 million, reached $607 million within a week. However, despite this, BMNR shares saw a decline of %2.6, bringing the stock price 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 liquidity contraction. Lee indicated that a major market maker may have incurred losses following the sharp price drop in October, which has contributed to a decrease in the capacity to provide liquidity. He described this situation as a form of monetary tightening for the crypto market, recalling that a similar effect in 2022 lasted for approximately six to eight weeks.

Despite the current downturn, Thomas Lee believes that the crypto market has not yet reached a cycle peak. In his shareholder note for November, he expressed that structural factors could push the peak of the cycle to 2026 and beyond. He also emphasized that tokenizing assets like stocks, bonds, and real estate on the Ethereum network could create significant openings for the financial system and that this trend should be closely monitored.