What You Need to Know:
- BitMine Immersion Technologies has accumulated 163,142 ETH, valued at approximately $500 million.
- The company’s strategy involves building a large ETH treasurery, akin to its bitcoin endeavors.
- Following this announcement, its shares surged by over 40%. In contrast, ether reserves across various organizations now total about 1.5 million ETH.
BitMine Immersion Technologies (BMNR), an ether-focused firm led by Fundstrat’s Tom Lee, has rapidly converted cash into cryptocurrency. Their stock jumped as much as 40% after announcing the acquisition of 163,142 ETH, now valued at around $500 million, which is a stark increase from the $250 million it raised during a private placement on July 9.
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This stock price rise occurs after a significant 65% drop resulting from a previous $2 billion capital raise. Currently, the shares are trading around $4.88, down from $6.25 earlier this month.
Tom Lee has compared this strategy to the notable bitcoin holdings of Strategy (MSTR), arguing that akin to its large BTC inventory, accumulating 5% of the ETH supply might create an attractive investment opportunity. Lee suggests this accumulation may function as a sort of financial cushion against adverse market conditions.
As a final note, while ether has dipped about 9% this year, bitcoin has fared better, increasing by roughly 29%.
