BitMine expanded its Ethereum holdings this week with nearly $200 million in fresh purchases, deepening its lead as the largest single holder of the asset.
The recent acquisition comes as Ethereum (ETH) is trading close to a one-month low. This dip in price has been accompanied by a noticeable trend of medium-sized wallets offloading their holdings, as highlighted by various on-chain data analytics.
On December 6, BitMine acquired 22,676 ETH from BitGo for around $68.7 million, translating to an average purchase price of about $3,028 per token. This strategic buy suggests a belief in Ethereum’s potential for recovery.
Interestingly, this transaction followed closely after another major purchase: BitMine had already acquired 41,946 ETH just a day earlier from FalconX and BitGo for approximately $130.8 million.
Lookonchain, citing Arkham Intelligence, confirmed these purchases, painting a vivid picture of BitMine’s aggressive accumulation strategy.
Following these transactions, BitMine disclosed that its total ETH holdings reached 3.73 million as of November 30, which is valued at over $11 billion at current market prices. This staggering amount positions BitMine significantly ahead of its competitors in the crypto landscape.
In addition to its Ethereum holdings, BitMine also reported owning 192 BTC, a $36 million position in Eightco Holdings, and a staggering $882 million in cash reserves.
Data from Strategy ETH Reserve reveals that BitMine holds more ETH than the next five biggest holders combined, which include significant entities like SharpLink and the Ethereum Foundation.
This colossal treasury positions BitMine as the second-largest corporate holder of cryptocurrency by value, only trailing Michael Saylor’s Strategy, known for its Bitcoin holdings.
These recent acquisitions by BitMine come at a time when Ethereum is facing some headwinds. According to BeInCrypto, ETH has experienced a decline of over 10% in value during the past month, currently hovering around the $3,027 mark.
Alphractal’s Ethereum Accumulation Heatmap indicates that wallets holding between 1 and 10,000 ETH have been selling aggressively around this cycle’s peaks. Such activity has increased selling pressure within the market, which may be impacting ETH prices negatively.
Interesting to note, larger wallets with more than 10,000 ETH have exhibited limited activity. They have been distributing their holdings but without any significant moves toward accumulation, reflecting a cautious approach to the current market environment.
Despite these challenging conditions, a segment of analysts maintains a bullish outlook for Ethereum in the long run. Fundstrat CEO and BitMine Chair Tom Lee has expressed optimism, stating that he believes Ethereum could hit $12,000 if Bitcoin ascends to $250,000, based on historical correlations between these cryptocurrencies and the burgeoning demand for tokenized real-world assets.
Lee further suggests that Ethereum’s value could potentially rise to an astonishing $62,000 if its valuation ratio relative to Bitcoin expands over time, indicating a significant growth trajectory.
For additional insights, read the original story by Oluwapelumi Adejumo at BeInCrypto.