BitMine now holds the most Ethereum, totaling $6.6 billion – CoinLaw

ond-largest overall corporate crypto treasury after MicroStrategy.

BitMine’s approach has attracted attention for its goal of acquiring 5 percent of all Ethereum in circulation, known as the “alchemy of 5%.” Despite the significant increase in Ethereum holdings, BitMine saw its stock price decline by more than 14 percent over the past week as the broader market experienced a downturn.

BitMine’s Ethereum Strategy: Aiming for 5 Percent of ETH

Based in Las Vegas, BitMine made waves by increasing its ETH reserves by $1.7 billion within a week, escalating from $4.9 billion to $6.6 billion in assets. These purchases have elevated its Ethereum holdings to approximately 1.3 percent of the total supply.

Chairman Thomas Lee, a prominent market strategist from Fundstrat, stated, “We continue to believe Ethereum is one of the biggest macro trades over the next 10-15 years.” He drew parallels between the shift in the crypto landscape and the historic transition away from the Bretton Woods system, marking the beginning of a new financial era.

BitMine’s focus on Ethereum stands in contrast to other companies like MicroStrategy and MARA Holdings, which primarily hold Bitcoin.

Institutional Support Backs BitMine’s Bold Move

BitMine’s strategy has garnered support from institutional giants such as ARK Invest’s Cathie Wood, Pantera Capital, Founders Fund, Bill Miller III, Kraken, Galaxy Digital, and Digital Currency Group. According to spokesperson Marcy Simon, the financial industry increasingly views Ethereum as the cornerstone of modern banking and payment solutions, particularly with the integration of AI technologies on the blockchain.

Stock Slide Amid ETH Pullback

Despite BitMine’s success in accumulating Ethereum, its stock experienced a 14.2 percent decline from August 11 to August 18. In a single day, shares plummeted by 7 percent to $54, reflecting a 5 percent drop in the price of Ether, which dipped below $4,300 after reaching record highs near $4,800.

Other firms with crypto treasury holdings also witnessed similar downward trends:

– SharpLink Gaming recorded a 3 percent decrease
– DeFi Development and Upexi saw declines of 9 percent and 6 percent, respectively

Future Plans: $24.5 Billion Stock Sale

To sustain its aggressive Ethereum acquisition strategy, BitMine revealed a $24.5 billion at-the-market stock sale. This influx of capital will propel the company towards its ambitious target of acquiring 5 percent of all Ethereum.

BitMine’s closest competitor in terms of Ethereum holdings, SharpLink Gaming with 729,000 ETH, recently secured $389 million for similar purchases. Another adversary, The Ether Machine, currently holds 345,000 ETH.

Ethereum Ecosystem Growth Fuels Demand

The broader Ethereum ecosystem is experiencing significant growth:

– Ethereum ETFs generated $17 billion in trading volume the previous week
– Standard Chartered revised its ETH price target for 2025 from $4,000 to $7,500
– The Pectra upgrade in May enhanced Ethereum’s performance by increasing transaction capacity and validator efficiency
– Since May, ETH’s price has surged by 139 percent, surpassing $4,700 before the recent correction.

CoinLaw’s Takeaway

BitMine’s bold strategic move highlights a strong commitment to Ethereum over Bitcoin, a rarity in the corporate crypto landscape. Although the stock decline may raise concerns, such volatility is common when traditional finance intersects with ambitious crypto endeavors. If BitMine maintains its current trajectory, it could reshape how public companies allocate their treasuries. Observing the progression of the “alchemy of 5%” initiative will undoubtedly be intriguing.