Despite a $6.5 billion loss, still buying! Bitmine is bottom-fishing for Ethereum, Tom Lee: Fundamentals continue to strengthen

Bitmine, led by Tom Lee, continues to increase its holdings of Ethereum, now owning 3.55% of the circulating supply, and has significantly staked ETH, betting on the strong on-chain fundamentals outweighing the current price.

Led by “Wall Street’s Oracle” Tom Lee, Bitmine Immersion Technologies (stock ticker: BMNR) continues to strengthen its long-term bet on Ethereum. According to a statement released on Monday, Bitmine bought an additional 41,788 ETH over the past week, bringing its total holdings to approximately 4.285 million ETH.

Bitmine stated that the average purchase price per ETH for this batch was about $2,317. As of February 1, the value of its ETH holdings is approximately $9.9 billion, with an unrealized loss (paper loss) exceeding $6.5 billion.

In addition to the expanding ETH holdings, Bitmine also disclosed that its total holdings of cryptocurrencies, cash, and “Moonshot” investments (Ethereum ecosystem investments) amount to $10.7 billion. This includes $586 million in cash, as well as Bitcoin holdings and strategic investments in private companies and promising projects.

This latest purchase has increased Bitmine’s ETH holdings to 3.55% of the total circulating supply on the network (about 120.7 million ETH). The company’s long-term goal is to hold 5% of all circulating ETH, and they have already surpassed 70% of this target.

Bitmine also revealed that the total amount of ETH staked by the company has risen to approximately 2.9 million ETH, with nearly 900,000 ETH added just last week. Based on current staking rates, Bitmine estimates an annualized staking income of about $188 million.

Chairman Tom Lee explained that the recent continued accumulation of ETH is due to a disconnect between “on-chain activity” and the “ETH market price.” He observed that although ETH has fallen from $3,000 at the start of the year to around $2,300, on-chain data shows a very different, robust picture: daily transaction volume and active addresses have hit all-time highs.

Tom Lee pointed out that Bitmine views this correction as a good opportunity to increase its ETH holdings while the fundamentals remain strong. He said:

“Given the continued strength of Ethereum’s fundamentals, we believe this correction is highly attractive, and therefore Bitmine has been steadily buying ETH. We believe the current price does not reflect ETH’s high utility and its future importance in the financial sector.”

It is worth noting that Bitmine’s market capitalization is currently around $11.4 billion, still below the value of its ETH reserves. As recent stock prices have declined, this “market cap below asset value (discount)” phenomenon has been growing, making Bitmine a hot topic in the market.

• This article is reprinted with permission from: BlockTalk
• Original title: “Unrealized Loss of $6.5 Billion, Still Buying! Bitmine Acquired Over 41,000 ETH Last Week”
• Original author: Block Sister MEL