Bitmine Immersion Technologies Inc., the crypto treasury firm linked to Tom Lee of Fundstrat, has bought the Ethereum (ETH) dip. According to new insights from Lookonchain, the firm has topped its Ethereum holdings with 45,759 ETH, a sign of its sustained support for the coin.
Bitmine betting on imminent price rebound
As showcased by the ETH purchase worth a total of $90.83 million, Bitmine has now increased its total holdings to 4,371,497 ETH, valued at $8.68 billion.
Bitcoin has spent the better part of the past month advocating for Ethereum. Within the past year, it has grown its holdings, becoming the largest HODLer of Ethereum, ahead of SharpLink Gaming.
Bitmine’s bets on Ethereum are currently questionable, as the average cost is $3,821. At the current price of $1,960, this position is down over $8.03 billion. Despite this massive drawdown, Chairman Tom Lee has reiterated that Bitmine has a long-term disposition to the market and does not focus on momentary price shifts.
Pending when the firm sees a return on its holdings, it has staked its Ethereum holdings, compounding returns to its shareholders.
Bitmine and investment diversification
Beyond its role as the biggest Ethereum treasury firm, Bitmine is also diversifying its stake into other ventures. The company has invested in MrBeast Industries, injecting up to $200 million into the YouTuber’s business interests.
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Bitmine started as a Bitcoin mining firm, but the undervalued nature of Ethereum soon attracted the firm. Tom Lee once predicted the Ethereum price would surpass $15,000 in the long term.
The acquisitions from Bitmine are partially offset by BlackRock, which has continued to sell ETH as part of its ETF portfolio rebalancing.
The Ethereum market outlook remains shaky, with open interest and CME gap analysis hinting at a potential rebound in the long term.