Experts Declared Ethereum Dead, but Company Invested $137 Million in One Day
Cryptocurrency investment firm BitMine, led by Tom Lee, a seasoned Wall Street professional, has recently made a significant investment in Ethereum, acquiring 40,718 ETH worth approximately $137 million. This move indicates a growing sense of institutional confidence in Ethereum, particularly evident during the current resurgence of the market.
Recent data from Arkham Intelligence’s blockchain indicates that BitMine received two major transactions within a 24-hour period. Coinbase Prime and FalconX transferred over 19,000 ETH, amounting to nearly $70 million. Additionally, about six days ago, Galaxy Digital’s over-the-counter desk sent approximately 6,000 ETH, valued at $29 million, to BitMine.
This latest acquisition of Ethereum by BitMine showcases the prominent roles played by FalconX and Galaxy Digital as major counterparts in these transactions. With transactions totaling $29.27 million and $35.8 million, respectively, these firms are pivotal players in facilitating the acquisition of Ethereum by BitMine.
BitMine has been active across various platforms, with total exchange withdrawals amounting to $12.83 billion. FalconX stands out as the leading contributor with withdrawals totaling $5.85 billion, making up 46 percent of the total outflows. Kraken follows closely behind with $2.64 billion, while BitGo and Galaxy Digital have processed $2.5 billion and $1.79 billion, respectively. Coinbase Prime’s contribution to the transfers totals $47.17 million.
As of November 6, BitMine’s overall holdings have decreased to $10.41 billion from $12.43 billion a week earlier, marking a $2.03 billion drop. Despite this decline, the portfolio has still managed to achieve a 3.36 percent month-over-month increase, highlighting the inherent volatility in cryptocurrency valuations, especially under current market conditions.
Tom Lee, the chairman of BitMine, remains bullish on the growth potential of leading cryptocurrencies by the end of the year. Lee’s predictions include Ethereum reaching $7,000 and Bitcoin trading between $150,000 and $200,000. BitMine’s recent expansion of its Ethereum position by $294 million, acquiring 82,353 ETH at an average cost of $3,909 per token, showcases the firm’s commitment to capitalizing on the anticipated market growth.
Overall, the recent influx of investments in Ethereum by BitMine, alongside Tom Lee’s positive outlook on the future prices of cryptocurrencies, reflects a growing institutional confidence in the digital asset market. As the market continues to evolve, the role of firms like BitMine in navigating the complexities of cryptocurrency trading will be essential in shaping the industry’s future landscape.
