TLDR
BitMine added 373,000 ETH to reach 1.52 million tokens worth $6.6 billion
BitMine’s share price dropped 14.2% since August 11 despite ETH accumulation
BitMine aims to acquire 5% of circulating Ethereum supply (called “alchemy of 5%”)
Standard Chartered raised ETH price prediction to $7,500 for 2025
BitMine is now the second largest public corporate crypto owner after Strategy
BitMine Immersion Technologies has expanded its Ethereum holdings to 1.52 million tokens worth approximately $6.6 billion, according to recent SEC filings. The publicly traded Bitcoin mining company added 373,000 Ether tokens to its treasury in the past week alone, making it the largest corporate holder of Ethereum.
Despite this major acquisition, BitMine’s share price has taken a hit. According to Google Finance data, BitMine shares have dropped 14.2% since August 11, the same period during which it bolstered its Ether holdings. More recent reports indicate the stock fell an additional 7% on Monday to $54 per share.
The company’s aggressive Ethereum buying strategy comes as the cryptocurrency has seen renewed interest from institutional investors. BitMine Chairman Thomas Lee explained in a statement that the company increased its Ether holdings as “institutional investors have expressed interest” in its ETH accumulation strategy.
This strategy, dubbed the “alchemy of 5%,” aims for BitMine to acquire 5% of the circulating Ethereum supply. Company spokesperson Marcy Simon told Cointelegraph, “BitMine has benefitted from incoming institutional investor interest in the company, as Ethereum is seen as the place where Wall Street is building the 21st-century banking and payment rails and as AI builds the token economy on Ethereum.”
Corporate Competition for Ethereum
According to industry tracker Strategic ETH Reserve, BitMine now controls 1.3% of the overall Ethereum coin supply. SharpLink Gaming follows as the second-largest corporate Ethereum holder, with 729,000 ETH worth approximately $3.2 billion. The Ether Machine ranks third with 345,000 ETH worth around $1.5 billion.
The past two months have seen a race between BitMine and SharpLink Gaming to add Ether to their treasuries. BitMine announced plans to raise $24.5 billion through an at-the-market stock sale to acquire more Ether. Meanwhile, SharpLink has completed a $389 million capital raise for similar purchases.
With its latest purchases, BitMine has become the second largest public corporate crypto owner overall, surpassing Bitcoin miner MARA Holdings and trailing only Strategy, which owns $72 billion in Bitcoin.
Market Impact and Future Outlook
The growing corporate interest in Ethereum coincides with increased ETF activity. Ethereum exchange-traded funds saw approximately $17 billion in trading volume last week, according to Bloomberg ETP analyst Eric Balchunas.
This surge in interest has prompted multinational bank Standard Chartered to revise its price prediction for ETH. The bank now forecasts a $7,500 price point for ETH in 2025, up from a prior estimate of $4,000. This bullish outlook is based on increased institutional buying and adoption of stablecoins due to US regulatory clarity.
Ethereum’s recent Pectra upgrade may have also contributed to the cryptocurrency’s performance. Since the May 7 upgrade, which was designed to improve user experience and increase data throughput for layer-2 transactions, ETH’s spot price has risen from $1,812 to over $4,300, representing a 139% increase.
However, the market has seen a pullback in recent days. Ethereum fell below $4,300 on Monday, down 5% over the previous 24 hours. Just a week earlier, ETH had nearly touched $4,800, coming within a few dollars of its all-time high.
Other digital asset treasury companies have also experienced recent stock declines. ETH-focused SharpLink Gaming dropped 3%, while Solana-centric firms DeFi Development and Upexi fell 9% and 6% respectively.
BitMine’s latest Ethereum acquisition represents a major bet on the future of the cryptocurrency, even as short-term market volatility affects both the token and related stocks.
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