These announcements reinforce the growing trend of public companies utilizing digital assets as a core treasury strategy.
The institutional “Race to Accumulate,” spearheaded by publicly traded corporate treasuries, continues to drive market narratives, with two major players, Strategy (formerly MicroStrategy) and BitMine Immersion Technologies, announcing significant acquisitions of Bitcoin and Ethereum, respectively.
Strategy reaches 640,000+ BTC milestone
Strategy announced that it had acquired an additional 390 BTC for approximately $43.4 million at an average price of $111,117 per Bitcoin.
This latest purchase brings Strategy’s total Bitcoin treasury to an unprecedented 640,808 BTC, valued at roughly $74 billion. This colossal holding represents over 3% of Bitcoin’s total supply.
The acquisition was notably funded by the proceeds from the sale of the company’s perpetual preferred stock offerings, highlighting their ongoing strategy of leveraging different financial instruments to fuel their Bitcoin accumulation thesis.
It is worth to note that Strategy’s consistent buying provides a structural bid for Bitcoin, and its public disclosure acts as a significant vote of confidence for the broader market, particularly for other corporate treasurers considering similar moves.
BitMine immersion solidifies its position as the top ETH treasury
Concurrently, BitMine Immersion Technologies (BMNR) announced that its Ethereum (ETH) holdings have surpassed 3.31 million tokens, with total crypto and cash holdings reaching $14.2 billion.
BitMine’s treasury is now confirmed to be the world’s largest Ethereum treasury, owning an estimated 2.8% of the entire ETH supply. The company stated its intent to reach an “Alchemy of 5%” of the total ETH supply.
In the preceding week alone, the company acquired 77,055 ETH, demonstrating an aggressive accumulation strategy supported by a premier list of institutional investors.
Market significance
While Strategy focuses on the “digital gold” narrative of Bitcoin, BitMine’s large and growing ETH treasury validates the alternative thesis that Ethereum is the necessary “digital oil” and platform for the future of decentralized finance. The competition between these two massive corporate treasuries for dominance in BTC and ETH highlights the bifurcation of the institutional crypto investment landscape.
These two announcements on October 27 underscore that capital allocation into digital assets by public companies is now a fundamental, sustained strategy, moving from an outlier trend to a mainstream component of corporate finance.
Source: https://coinidol.com/strategy-and-bitmine-acquisitions/