BitMine acquires more ethereum despite being underwater amid token’s price decline
CEO Tom Lee believes “the price of ETH is not reflective of the high utility of ETH and its role as the future of finance.”
BitMine Immersion Technologies presses on ahead with its ethereum treasury strategy, having acquired 41,788 tokens last week.
The company’s stash is currently underwater: ethereum is trading below $2,375 on Monday, lower than the $2,480 level from June when the firm first announced a private placement to jumpstart its treasury strategy. The firm’s total investment in ethereum is around $15.7 billion, marking a paper loss exceeding $6 billion.
Since BitMine unveiled its treasury strategy, ethereum climbed to an all-time high of around $5,000 but has tumbled alongside the broader crypto market.
The recent pullback represents a reset instead of a “structural breakdown,” Nicholas Roberts-Huntley, CEO and cofounder of Blueprint Finance, said. Roberts-Huntley told Sherwood News, “Those with a long horizon should focus on onchain signals and network usage rather than short-term swings, as the protocol’s utility and adoption trends remain intact.”
CEO Tom Lee said the weakness in ethereum’s price does not stem from fundamentals, citing the climb of daily network transactions and active addresses in the past several months. During the crypto winters of 2021-22 and 2018-19, on-chain activity declined.
BitMine considers the pullback — a more than 18% drop in the last seven days — as an opportunity. Lee said, “In our view, the price of ETH is not reflective of the high utility of ETH and its role as the future of finance.”
