Ethereum Whale Buys the Dip as Corporate Giant Scoops $42M in ETH During Crash

• BitMine recently purchased 20,000 ETH for $41.98 million, bringing its total treasury to 4.29 million ETH as it pursues a goal of owning 5% of the total circulating supply.
• Despite holding $8.2 billion in assets, the company is facing roughly $8 billion in unrealised losses and an 88% drop in its stock price as Ethereum trades near the $2,000 mark.
• Chairman Tom Lee dismissed the downturn as a “mini crypto winter,” opting to hold and stake the treasury for $374 million in annual rewards rather than selling at a loss.

BitMine bought about 20,000 Ethereum (ETH) for US$41.98 million (AU$64 million), according to Lookonchain using Arkham Intelligence data. 

The purchase adds to a large Ethereum treasury that the company is using to pursue a stated target of holding 5% of Ethereum’s circulating supply.

Strategic ETH Reserve data puts BitMine’s holdings at about 4.29 million ETH, described as more than 70% of the way to that goal. The company has been adding in multiple batches, including a 40,302 ETH buy in late January for about US$116 million (AU$177 million), followed by further accumulation in early February. 

In other words, Bitmine is buying the dip as Ethereum remains down about 35% year-to-date and barely traded above the US$2,000 (AU$2.8K) barrier today. 

That decline left BitMine with large unrealised losses of around US$8 billion (AU$12 billion), with holdings worth about US$8.2 billion (AU$12.5 billion) against a US$16.4 billion (AU$25 billion) cost basis. 

BitMine’s stock was down about 88% over the same period.

Read more: UK Lawmakers Hear Skepticism on Stablecoins as Lords Launch Regulation Inquiry

Not Selling

Chairman Tom Lee described the volatility as a “mini crypto winter,” said there is no plan to sell, and pointed to staking income of about US$374 million a year (AU$572.2 million). 

He also tied the strategy to longer-term expectations for Ethereum use in tokenisation and broader Wall Street adoption. All things considered, Lee said paper losses are inevitable in a downturn, stating that they are a ETH treasury company focused on accumulation and staking rather than market timing.

Related: UK Lawmakers Hear Skepticism on Stablecoins as Lords Launch Regulation Inquiry

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