BitMine Invests $70M in Ethereum Despite Market Crash
In just three days, BitMine injected nearly 70 million dollars into Ethereum. According to crypto analysts, this aggressive move contrasts with the atmosphere of doubt currently weighing on the market. More details below !
In brief
- BitMine buys $70M of Ethereum to reach 5% of the global token supply.
- Despite a bear market, BitMine anticipates an Ethereum supercycle similar to bitcoin’s.
BitMine targets 5% of the global Ethereum supply
BitMine acquired 23,773 ETH between Saturday and Monday. This represents about 70 million dollars according to the current Ethereum price.
The data shows two blockchain transactions :
- 16,693 ETH valued at $50.1 million ;
- 7,080 ETH worth approximately $19.8 million.
BitMine currently holds 3.7 million tokens in reserve. This makes it the undisputed leader in crypto treasury dedicated to Ethereum. Indeed, the company remains committed to its clear ambition: to control 5% of the global supply of ETH. Goal already reached at 62%.
Towards an Ethereum supercycle? Tom Lee believes so
According to BitMine president Tom Lee, Ethereum seems to be following the same trajectory as bitcoin in 2017. He thus mentions a crypto supercycle comparable to x100 growth of BTC since its inception.
To benefit from such a cycle, one must endure existential moments. In other words, the idea is to absorb the pain to reap later. BitMine exemplifies this principle. The company is increasing its exposure to Ethereum while the crypto market falters.
This bet is set in a moment of transition. It refers to the Ethereum blockchain which continues to attract smart contract projects. However, the lack of regulatory clarity blocks large funds. Result: institutional liquidity remains paralyzed despite overall bullish fundamentals.
In any case, one thing is certain: BitMine dares what others wait for. This massive accumulation of Ethereum could mark a turning point. If the market follows, the company will indeed establish itself as a central player in DeFi. Story to watch…
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My name is Ariela, and I am 31 years old. I have been working in the field of web writing for 7 years now. I only discovered trading and cryptocurrency a few years ago, but it is a universe that greatly interests me. The topics covered on the platform allow me to learn more. A singer in my spare time, I also cultivate a great passion for music and reading (and animals!)
The views, thoughts, and opinions expressed in this article belong solely to the author, and should not be taken as investment advice. Do your own research before taking any investment decisions.