- Bitmine now owns 3.4% of Ethereum’s total supply.
- Its latest purchase comes as the token trades 40% below its record high.
- DATs are under pressure to prove themselves.
Tom Lee’s Bitmine just bought $421 million worth of Ethereum despite the cryptocurrency trading 40% below its all-time high.
The company’s new haul lifts its Ethereum holdings past the $12 billion mark, with Bitmine saying it now owns 3.4% of the cryptocurrency’s total supply.
“This is a tremendous milestone,” Lee said.
The purchase comes as traditional financial institutions are aggressively adopting blockchain technology amid greater regulatory clarity worldwide.
However, Lee’s latest addition to Bitmine’s coffers comes at a perilous time for DATs.
Supercyle intact
Over 200 companies have pivoted to add crypto to their treasuries, akin to how Strategy began buying Bitcoin in 2020.
Those companies are now under pressure to prove themselves, amid a steep decline in the broader digital asset treasury market.
Many of these firms are now worth less than their underlying assets, raising questions about their viability.
Bitmine’s share price is down 50% since September. Nevertheless, Lee has maintained his bullish stance on the second-largest crypto.
Earlier in December, Lee went so far as to declare that the crypto industry is in a “supercycle.”
He consistently argues that Ethereum’s technology is analogous to the modern financial rails that were built after the end of the Bretton Woods gold standard in 1971.
Lee is not the only one who is optimistic.
Last week, tech investor Cathie Wood, chief investment officer of the future-themed ARK Invest, purchased another $17 million in Bitmine shares across multiple funds.
Moreover, the company’s shares are among the most actively traded in the US.
Peter Thiel’s Founders Fund is also among Bitmine’s backers.
Bitmine isn’t the only DAT to double down on its purchases. Eole and ANAP Holdings added more Bitcoin to their coffers this month.
Lee has long been one of Ethereum’s most bullish voices. In August, he called for $7,500 by year’s end and $25,000 by 2028.
Crypto market movers
- Bitcoin is down 2.5% over the past 24 hours, trading at $87,500.
- Ethereum is down 2.4% on the day and is trading at $2,960.
What we’re reading
- Bitcoin buyers to spark Santa rally? Three clues on where the price is going — DL News
- Solana, Pump.fun execs sued. Lawsuit claims 5,000 private messages prove ‘insider-rigged casino’ — DL News
- Bitcoin’s Demand Boom is Fading: CryptoQuant — Unchained
- The Leverage Flush That Changed This Crypto Cycle w/ Craig Birchall — Milk Road
- Japanese firms plough $2.6m into Bitcoin despite digital asset treasury concerns — DL News
Lance Datskoluo is DL News’ Europe-based markets correspondent. Got a tip? Email him at lance@dlnews.com.