BitMine Immersion Technologies, the largest corporate investor in Ethereum (ETH), recently acquired an additional $65 million worth of ETH for its treasury, marking its first investment this month.
This significant purchase was executed through six separate transactions via Galaxy Digital’s over-the-counter desk, according to blockchain analytics from Arkham Intelligence.
BitMine’s fresh ETH acquisition occurs amid a substantial decrease in Ether reserves across centralized exchanges, which have reached their lowest levels in three years. The overall supply has contracted by 38% since 2022, largely due to corporate treasury buy-ins and exchange-traded funds absorbing available ETH tokens.
A BitMine representative confirmed that all ETH purchases were made using cash without leverage, and the company now holds over 1.5% of the total circulating Ethereum supply.
BitMine Stock Experiences Strong Rally
Shares of BitMine Immersion Technologies (BMNR) closed at $44.86 on Wednesday, reflecting a 5.58% gain during the trading session, as reported by Google Finance. The stock experienced a slight after-hours decline of 0.54%, ending at $44.62.
BMNR has demonstrated remarkable year-to-date growth of 540%, though it remains down nearly 67% from its July 3 high of $135. Trading volume remains active, with an average of over 51 million shares traded over the last 10 days.
Recent speculation suggests that chairman Tom Lee may appear on The Joe Rogan Experience podcast, which could intensify public attention on BitMine and Ethereum, given the podcast’s vast audience.
Tom Lee Reaffirms $60,000 Ethereum Price Target
During a recent appearance on the Medici Presents: Level Up podcast, Tom Lee reiterated his long-term price target for Ethereum, expecting ETH to reach $60,000.
Lee compared Wall Street’s growing interest in Ethereum to the historic 1971 moment on the New York Stock Exchange, when then-President Richard Nixon implemented wage and price controls to combat inflation, resulting in record trading volumes and gains.
He highlighted that as Wall Street adopts crypto infrastructure, Ethereum stands to be a primary beneficiary among blockchain assets. Lee emphasized that publicly traded companies holding ETH treasuries benefit from staking rewards that traditional Ethereum ETFs cannot fully access due to liquidity rules.
According to Lee, the 3% staking reward on ETH effectively adds a 90% valuation premium to companies holding ether, implying a valuation multiplier of 1.9 compared to current market valuations. BitMine’s market net asset value currently trades at a multiplier of 1.13, based on data from Strategic ETH Reserve.
The inability of Ethereum ETFs to fully stake their holdings means they will likely not capture the full staking premium, enhancing the investment appeal of companies like BitMine with direct ETH treasuries.
