While the crypto market is going through a period of turbulence marked by the erasure of $350 billion in four days, BitMine Immersion Technologies continues its massive purchases of Ether. The company has accumulated $1.5 billion in crypto since last weekend's crash. But can this aggressive strategy resist Tom Lee's fears about the bursting of a speculative bubble?
In brief
- BitMine has acquired 379,271 Ether worth $1.5 billion in three separate purchases since last weekend's stock market crash.
- The company now holds over 3 million ETH, representing 2.5% of Ethereum's total supply worth $11.7 billion.
- Tom Lee of Fundstrat warns of the possible bursting of a bubble in tokenized digital assets, observing that several are trading below their net asset value.
BitMine increases its stake on Ether despite the crypto storm
BitMine Immersion Technologies has demonstrated a fierce appetite for Ether in recent days. The company made three major acquisitions: 202,037 ETH immediately after the weekend crash, followed by 104,336 ETH last Thursday, then 72,898 ETH on Saturday.
These datareported by Arkham Intelligence and “BMNR Bullz,” places BitMine as the largest Ethereum treasury company in the world.
With a portfolio exceeding 3 million ETH, BitMine now controls 2.5% of the total Ethereum supply, valued at $11.7 billion.
This impressive accumulation comes as the crypto market suffered one of its worst shocks, losing $350 billion in capitalization in four days following Donald Trump's announcement of new 100% customs duties on Chinese goods. Bitcoin alone saw its capitalization drop by $200 billion.
The company, which began its acquisitions last July when Ether was hovering around $2,500, has an ambitious goal: to hold 5% of the total Ethereum supply. Already halfway there in just a few months, this strategy demonstrates unwavering confidence in the long-term potential of the world's second-largest crypto.
The contradictory signals of a market under tension
Tom Lee of Fundstrat, although known for his optimism towards cryptos, issues a cautious warning. The analyst suggests that the tokenized digital asset (DAT) bubble may have already burst.
“ If it is not already a speculative bubble… How would this bubble burst? “, he told Fortune. Many DATs are now trading below their NAV, a worrying signal for investors.
Paradoxically, Lee maintains his bullish conviction on Ethereum. Last Thursday, he even told Cathie Wood, CEO of ARK Invest, that “ Ethereum Could Topple Bitcoin the Same Way Wall Street and Stocks Toppled Gold After 71 “. This bold prediction contrasts with the widespread caution currently reigning in the markets.
The data confirms this reluctance: American investors withdrew $756 million from spot ETFs linked to cryptos last Monday, including 428 million from Ethereum products and 326 million from Bitcoin products.
Vincent Liu of Kronos Research explains that “capital outflows reflect post-liquidation caution.” The market is clearly waiting for clearer macroeconomic signals before reinvesting massively.
A window of opportunity for daring investors
Despite the current volatility, some players see this as a historic opportunity. Huobi founder Li Lin has reportedly raised nearly $1 billion for an investment strategy similar to BitMine. 10x Research notes that companies with solid capital bases “can still generate significant alpha” in this context.
Tom Lee remains convinced that “we are not yet at the peak of the crypto cycle”. He observes that leveraged long positions are near their record lows. This extreme situation suggests, according to him, that “we are at our lowest point and that we are rising again”.
BitMine's bet on Ether thus constitutes a life-size test for the future of institutional cryptos. Between the audacity of a massive accumulation and the warning signals from analysts, the market finds itself at a decisive crossroads for the months to come.
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