Key Takeaways
What’s BitMine’s ETH holdings goal?
It eyes 6 million ETH. The current 3.63 million ETH stash indicates that the plan is 60% complete.
How did the latest bid affect markets?
BitMine stock BMNR soared 20% while the ETH price surged 5% and defended $2.8k support.
BitMine Immersion, the world’s largest Ethereum [ETH] treasury firm, has hit 60% of its holdings target.
In its latest report, the firm announced that it acquired an additional 69,822 ETH last week, bringing its overall holdings to 3.63 million ETH or 3% of the overall supply.
Compared to its 5% ETH supply target (6 million ETH) or the so-called “Alchemy of 5%,” the firm was only left with 2.4M ETH to hit its target.
The firm scooped the Q4 dip as ETH slipped $2.6k last week. Reacting to the same, Tom Lee, chair of BitMine and CIO of Fundstrat, viewed current ETH’s value as an “asymmetric risk/reward’ opportunity.
“A few weeks ago, we noted the likely downside for ETH prices would be around $2,500 and current ETH prices are basically there. This implies asymmetric risk/reward as the downside is 5% to 7%, while the upside is the supercycle ahead for Ethereum.”
BitMine’s aggressive ETH bid
Source: Strategic ETH Reserve
Since October, BitMine has been bidding approximately 122K ETH per week, accumulating 3% of the ETH total supply in under a year.
To reach its target of 6 million ETH at its current pace, it would take about 20 weeks, or around five months.
BitMine’s stock, BMNR, soared about 20% to $31.1 at press time, after the latest ETH purchase.
That being said, the firm has been driving the latest treasury inflows almost single-handedly. Notably, the pace of treasury demand cooled in October and remained flat in November at around 70K ETH per week.
Source: DeFiLlama
ETH price action
On the price charts, ETH bounced 5% on the 24th of November, effectively defending the $2,800 support.
At press time, the asset traded at $2.88k, and recovery progress to $3k and clearance of the overhead hurdle at $3.4k would depend on Bitcoin surging above $90k.
Source: ETH/USDT, TradingView
Despite the relief bounce, however, some were slowly offloading their stash, perhaps to cut their losses after the Q4 drawdown.
On the Binance exchange, netflow spiked in the past few days, indicating that more ETH flowed into the platform to be offloaded.
Source: CryptoQuant
Even so, institutional flows are back, with ETFs recording two consecutive days of inflows. This could help alleviate the pressure and facilitate a recovery if market sentiment improves.
Source: https://ambcrypto.com/inside-bitmines-20-stock-surge-amid-70k-ethereum-purchase/