BitMine ETH Holdings Reach $6.6 Billion as Stock Price Falls 14%. Here’s Why

TLDR

• BitMine added 373,000 Ether tokens to reach 1.52 million ETH worth $6.6 billion
• Company stock dropped 14.2% in one week despite adding more cryptocurrency
• BitMine now holds 1.3% of total Ethereum supply, making it largest corporate ETH holder
• Company plans $24.5 billion stock sale to buy more Ether as part of “alchemy of 5%” strategy
• Ethereum ETFs saw $17 billion trading volume last week driving renewed institutional interest

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BitMine Immersion Technologies has built the world’s largest corporate Ethereum treasury worth $6.6 billion. The publicly traded Bitcoin mining company added 373,000 Ether tokens in one week.

The purchase brought BitMine’s total holdings to 1.52 million ETH tokens. This represents 1.3% of Ethereum’s total circulating supply.

BitMine Chairman Thomas Lee said institutional investors have shown interest in the company’s ETH strategy. The firm calls this approach the “alchemy of 5%” plan to acquire 5% of all Ethereum.

“Ethereum is seen as the place where Wall Street is building 21st-century banking and payment rails,” company spokesperson Marcy Simon told reporters. She added that artificial intelligence development on Ethereum has attracted institutional attention.

Source: Google Finance

BitMine’s stock price has moved in the opposite direction of its crypto purchases. Shares fell 14.2% between August 11 and August 18 according to Google Finance data.

The company traded at $54 per share on Monday, down 7% for the day. This decline happened as Ether’s price dropped below $4,300, falling 5% in 24 hours.

Corporate ETH Race Heats Up

SharpLink Gaming ranks as the second-largest corporate Ether holder with 729,000 ETH worth $3.2 billion. The Ether Machine holds third place with 345,000 ETH valued at $1.5 billion.

BitMine and SharpLink have competed to add more Ether over the past two months. BitMine announced plans for a $24.5 billion at-the-market stock sale to fund additional purchases.

SharpLink completed a $389 million capital raise specifically to buy more Ether tokens. Both companies are betting on Ethereum’s long-term growth potential.

Other crypto treasury companies also saw stock declines on Monday. SharpLink Gaming dropped 3% while Solana-focused firms DeFi Development and Upexi fell 9% and 6% respectively.

ETF Interest Drives Ethereum Demand

Ethereum exchange-traded funds generated $17 billion in trading volume last week according to Bloomberg analyst Eric Balchunas. This institutional interest has supported ETH price gains throughout 2024.

Standard Chartered Bank raised its Ethereum price target to $7,500 for 2025, up from a previous $4,000 forecast. The bank cited increased institutional buying and stablecoin adoption due to regulatory clarity.

Ethereum’s Pectra upgrade implemented on May 7 has improved the network’s capabilities. The upgrade enhanced user experience, introduced validator improvements, and increased layer-2 transaction capacity.

ETH’s spot price has risen 139% since the Pectra upgrade launch. The token traded at $1,812 in May and reached near-record highs above $4,700 last week before the recent pullback.

BitMine now ranks as the second-largest public corporate crypto holder behind MicroStrategy’s $72 billion Bitcoin treasury. The company’s ETH accumulation strategy continues despite recent stock price weakness and Ether’s pullback from near-record levels.

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