BitMine Goes Big on Ethereum: $200M Buying Spree

BitMine Doubles Down on ETH Investment

BitMine, chaired by Tom Lee, has made a significant splash in the Ethereum market, acquiring nearly $200 million worth of ETH in just two days. This move solidifies BitMine's position as a leading holder of the cryptocurrency.

Strategic Acquisition During Market Dip

The acquisition occurred as ETH prices experienced a slight downturn, trading near a one-month low. While smaller wallets were reportedly offloading their ETH holdings, BitMine seized the opportunity to accumulate more.

• On December 6th, BitMine purchased 22,676 ETH from BitGo for approximately $68.7 million, averaging around $3,028 per token.
• The day before, the firm acquired 41,946 ETH from FalconX and BitGo for approximately $130.8 million.

These recent purchases add to BitMine's already substantial holdings of 3.73 million ETH, worth over $11 billion at current prices. Beyond ETH, BitMine also holds 192 BTC and other assets.

A Whale Among Fish

BitMine's ETH reserves now surpass the combined holdings of its next five largest peers, including SharpLink and the Ethereum Foundation. This makes BitMine the second-largest corporate crypto holder, only surpassed by Strategy, a major Bitcoin holder.

Bullish Outlook Despite Short-Term Weakness

Despite the recent price dip, Tom Lee remains highly optimistic about Ethereum's long-term potential. He forecasts that ETH could reach $12,000 if Bitcoin hits $250,000, based on the historical correlation between the two assets and the increasing demand for tokenized real-world assets. Lee even suggested a potential high of $62,000 if ETH's valuation relative to Bitcoin expands.

Key Takeaways:

• BitMine spent $200 million on Ethereum in 2 days
• Tom Lee is very bullish on ETH
• Smaller wallets have been offloading ETH