Bitmine Immersion Adds $44M in Ethereum as Institutional Demand Surges

  • Bitmine Immersion acquired 14,618 ETH worth $44.34 million through BitGo wallet on Friday.
  • Company now holds 3.6 million ETH, representing approximately 3% of total Ethereum supply.

Bitmine​‍​‌‍​‍‌​‍​‌‍​‍‌ Immersion Technologies added to its strategic stash of Ethereum with one more acquisition that was worth over $44 million on Friday. The company listed on NYSE American bought 14,618 ETH via a BitGo hot wallet transaction, as per on-chain data. The company, which has the support of Tom Lee, is holding around 3.6 million ETH tokens now, which is roughly 3% of the total circulating supply of Ethereum. With a market cap of $12.19 billion and crypto assets worth $11.2 billion, the company is trading at a slight ​‍​‌‍​‍‌​‍​‌‍​‍‌premium.

Aggressive Accumulation Strategy Continues

This​‍​‌‍​‍‌​‍​‌‍​‍‌ newest purchase is part of a bitmine immersion aggressive pattern of ethereum accumulation throughout market conditions in novembers. The company showed consistent buying activity when it purchased 28,625 ETH valued at $82.11 million earlier in the week.

A day just before that transaction, the firm got another 21,537 ETH approximately worth $60 million from FalconX exchange. These consecutive purchases highlight the company’s conviction in Ethereum’s long-term value proposition despite recent market volatility.

The purchase spree is in line with the regained momentum of U.S. spot ethereum exchange-traded funds, especially products from BlackRock and Fidelity. These institutional investment vehicles recorded significant inflows before the Thanksgiving holiday, signaling broader market interest in the ​‍​‌‍​‍‌​‍​‌‍​‍‌asset.

Bitmine​‍​‌‍​‍‌​‍​‌‍​‍‌ Immersion’s stock was very well received by investors, as evidenced by the 9.79% increase in the last trading session on Wednesday when shares were exchanged at $31.74. During the after-hours trading, the stock went up by another 3.65% and this was mainly due to the institutional ownership that has been increasing and has now reached a level of more than 10 million shares.

The price of Ethereum is holding at $3,019, representing an almost 15% increase over the past week, during which bulls have been defending the important $3,000 level. The data from the derivatives market shows that the sentiment is becoming more and more positive as the futures open interest has been going up by 0.71% to $36.20 billion during the last few ​‍​‌‍​‍‌​‍​‌‍​‍‌hours.

According​‍​‌‍​‍‌​‍​‌‍​‍‌ to the ETH/BTC daily chart pattern, a breakout might occur after the RSI divergence. If the levels remain above $3,000 after the week’s close, a move higher toward the $3,300-$3,400 range may be triggered. 

There was a 31% decrease in trading volume in the last 24 hours, which indicates that traders are taking a cautious approach to the cryptocurrency options expiry that is happening ​‍​‌‍​‍‌​‍​‌‍​‍‌today.

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Source: https://thenewscrypto.com/bitmine-immersion-adds-44m-in-ethereum-as-institutional-demand-surges/