Bitmine Immersion Technologies (BMNR), a digital asset treasury firm focused on Ethereum, announced on Monday that it has acquired over 54,000 Ether. Ethereum$3,204.60 Last week's value reached approximately $173 million at current prices.
The company currently holds close to 3.6 million ETH, which, together with a small Bitcoin stash and stocks from EightCo (ORBS), a financial company specializing in World Coin, accounts for close to 3% of the total amount of tokens remaining. Additionally, cash holdings increased to $607 million from $398 million last week.
BMNR stock fell 2.6% on Monday, its lowest since August.
Thomas Lee, chairman of BitMine and co-founder of Fundstrat, believes that the current slump in crypto prices is due to a sharp drop in liquidity, which is likely due to injured market makers exiting operations after the October 10 crash.
“When market makers have a 'hole' in their balance sheet, they try to raise funds and reduce the liquidity function in the market,” Lee said, likening the situation to a kind of 'quantitative tightening' (QT) for crypto assets. “In 2022, this QT effect lasted six to eight weeks.”
Despite the current economic downturn, Lee said the cryptocurrency has not yet reached the peak of the cycle. In a note to shareholders in November, he argued that structural factors could push the top of the cycle beyond 2026. He also pointed to the tokenization of assets such as stocks, bonds, and real estate on the Ethereum blockchain as a major trend to watch, calling it a “great unlocking” of the financial system.
Read more: Tom Lee says Ether is entering a 'supercycle' like Bitcoin. critics push back
