Ethereum price still not rising due to changing narrative and reduced ETF flows bearish pressureheld just below the $2,000 level. Although the price has fallen sharply, Bitmine Immersion seems unfazed by the stock price drop as it has made a new big strategic bet on major altcoins.
Bitmine doubles Ethereum with $91 million investment
institutional Ethereum sentiment and interest With the recent large purchases of altcoins, we are starting to see signs of strength again. At the center of this underlying strength is Bitmine Immersion, a leading ETH treasury company following recent large-scale ETH purchases.
In this new bullish mood, post A paper published on the X platform by macro expert and investor Milk Lord shows that Bitmine is doubling down on its long-term future by acquiring over $91 million worth of new ETH stacks. Even as market volatility continues to intensify, treasury companies are still buying up altcoins at a huge pace, suggesting a strategic approach.
Milkroad highlighted that the acquisition was made despite the company having $8 billion in unrealized losses. Although broader emotions may still be fragile, Bitmine continues to choose accumulation over vigilance As shown by the steady purchases over the past week, ETH has increased by around $1,989 per token during the period by 45,759 ETH.
After the latest ETH purchase, Bitmine Immersion’s crypto holdings now total 4.37 million ETH. Interestingly, this number represents approximately 3.6% of Ethereum’s entire circulating supply controlled by a single entity.
under consideration ETH current pricethe value of this large stash is decreasing on average. Currently, the company’s blended cost basis is at the $3,821 level. This means that a rebound of more than 90% from recent price levels would be required to break even and return the company to profitability.
ETH staking is now the main means of generating yield
In the meantime, their strategy is to generate yield from ETH staking while waiting, turning currently weak positions into useful capital. Over 3.04 million people ETH is locked up while stakingthis is a major long-term unlock.
Bitmine’s cryptocurrency holdings do not consist only of Ethereum. They also own Bitcoin, $670 million in cash, and stock in Beast Industries, which is run by Mr. Beast, the largest and most popular YouTuber. This is a move that could see ETH integrated into his new financial app.
ethereum investorretail holders in particular now have a public company with major skin in the game championing the altcoin’s success and stress testing whether the strategy’s MSTR model can be converted to ETH. This is known as structural supply reduction and may play a role in shaping supply, as a single company is effectively locking in 3.6% of supply without a sales plan. market outlook.
As of this writing, the price of ETH is trading at $1,998, indicating an increase of nearly 2% over the past day. Its trading volume increased by more than 7% during the same period, according to data from CoinMarketCap.
Featured image from Pixabay, chart from Tradingview.com
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