- BitMine is making its status more robust as the biggest holder of the second-biggest cryptocurrency by market capitalisation.
- In November last year, the Chief Investment Officer of Bitwise, Matt Hougan, mentioned the inefficiency of crypto treasuries.
The companies having crypto assets on their balance sheets will witness fierce consolidation this year, having only some of the biggest players with BTC and ETH on their balance sheets living, as per the analysts at Pantera Capital.
They further mentioned that the remaining will either be absorbed or left behind, leaving one or two fortunate players having alternative tokens. Experts reveal that the trend is so far noticeable, and asset accumulation is limited to only a number of corporations.
This is mainly obvious in the treasury sector of the second-biggest cryptocurrency by market capitalisation. BitMine is making its status more robust as the biggest holder of the second-biggest cryptocurrency by market capitalisation.
In the past week, the firm invested around $104 million to buy 35,268 ETH. Since the inception of this year, the portfolio of the company has surged by 92,511 ETH, standing at around $277 million.
At the press time, the company has managed more than 4.2 million ETH ($12.9 billion), estimating 3.48% of the overall supply of the asset. BitMine has also been involved heavily in staking, and the company has locked a total of 1,943,200 ETH, amounting to $5.71 billion.
The firm is responsible for a lot of assets managed by public corporate structures, having 1 million BTC worth $96.7 billion. Contrasting it with the second-largest treasury, it holds 52,850 BTC, accounting for $4.7 billion, over 11 times less than Strategy.
The increasing gap questions the sustainability of smaller treasuries, mainly those that generated capital via debt or equity issuance at the time of bull market phases. Some have so far experienced consequences at the end of December; ETHZilla sold 24,291 ETH worth $74.5 million to pay the debt obligations again.
In November last year, the Chief Investment Officer of Bitwise, Matt Hougan, mentioned the inefficiency of crypto treasuries.
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Source: https://thenewscrypto.com/crypto-treasury-firms-face-consolidation-as-big-players-dominate/