According to the latest on-chain data, BitMine saw the recent market downturn as an opportunity to further increase its exposure to Ethereum, the second-largest cryptocurrency by market capitalization. Through two separate new purchases, the Ethereum treasury firm expanded its holdings of $199 million worth of Ether tokens.
BitMine currently holds 3.08% of the total Ether supply.
In a recent post on social media platform This new round of accumulation involved two separate purchases. On Friday, December 5, it was 41,946 ETH, equivalent to $130.78 million, and on Saturday, December 6, it was 22,676 ETH, equivalent to $68.67 million.
This large-scale acquisition brings the Ethereum treasury company's holdings to approximately $11.3 billion, solidifying its position as the world's largest corporate Ethereum holder. With the largest altcoins continuing to accumulate over the past few months, BitMine currently holds approximately 3.08% of the total Ether supply.
It's worth noting that BitMine's market aggression is coming while the hype around digital asset treasury (DAT) is quieting down. While the acquisition of cryptocurrency assets is slowing among financial firms, shareholders are losing significant value as the market downturn continues to impact cryptocurrency-related stocks as well.
However, BitMine's overall performance has been quite impressive. The company announced its intention to pay dividends to shareholders for the first time in cryptocurrency history. What's interesting is that the Ethereum treasury company has nearly $900 million in cash reserves that can be used to purchase additional ETH.
BitMine buys dips while Ethereum whales take profits.
BitMine’s continued accumulation of Ether is evidence of its belief in the token’s long-term promise. However, this aggressive buying activity appears somewhat counter to market trends.
Ethereum price is hovering around $3,000 after a slight correction from recent local highs of $3,200. On-chain data shows that mid-sized whales (holding between 1,000 and 10,000 ETH) are putting significant selling pressure on the market.
Meanwhile, Alphractal found that large whales (over 10,000 ETH) remain much more neutral and calm, showing only light distributions.
Whales are generally considered to be one of the most influential investors in the market. That's because the whale's movements often provide insight into the coin's trajectory. BitMine is considered a whale due to its significant holdings, but it would be interesting to see the company move in the opposite direction of other related market participants.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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