BitMine Immersion Technologies, as the largest corporate holder of Ethereum (ETH), purchased $65 million worth of Ethereum for its company fund pool on Thursday, marking its first purchase this month.
According to blockchain analysis platform Arkham Intelligence, BitMine completed six transactions through Galaxy Digital's over-the-counter trading desk to finalize this acquisition.
As BitMine makes this purchase of Ethereum, the reserves of Ethereum on all centralized exchanges have dropped to a three-year low. Since 2022, the overall supply has decreased by 38% due to corporate fund pool purchases and exchange-traded funds absorbing supply.
On Tuesday, a representative from BitMine told Cointelegraph that the company did not use any leverage when purchasing Ethereum and currently holds over 1.5% of the total circulating supply of Ethereum globally.
The representative stated, "All Ethereum was purchased with cash on the spot."
According to Google Finance, BitMine Immersion Technologies (BMNR) closed at $44.86 on Wednesday, up 5.58%.
The stock slightly declined by 0.54% in after-hours trading, closing at $44.62.
BMNR has risen 540% year-to-date. However, the stock has dropped nearly 67% since its peak of $135 on July 3.
On Wednesday, a user on the X platform pointed out that BMNR is one of the most actively traded stocks, with an average trading volume of 51.07 million shares over the past 10 days and about 54.96 million shares over the past 30 days.
At the same time, there are rumors that Tom Lee will appear on the Joe Rogan podcast, which has over 20 million YouTube subscribers, potentially bringing more attention to BitMine and Ethereum.
On Wednesday, Tom Lee reiterated his view on the Medici Presents: Level Up podcast, stating that Ethereum (ETH) will rise to $60,000 in the long term.
Lee mentioned that Wall Street's interest in Ethereum could become a "1971 moment," driving the asset further upward. On August 17, 1971, the New York stock market surged, setting records for volume and daily gains, as President Richard Nixon froze wages and prices for 90 days and took several measures to combat inflation and stabilize the dollar.
"Wall Street's shift to crypto is, I believe, a 1971 moment for Ethereum. This brings a tremendous opportunity to migrate a lot of business to the blockchain. Ethereum won't be the only winner, but it will certainly be one of the major beneficiaries," Lee told co-host David Grider.
Lee pointed out that publicly traded companies holding Ethereum fund pools should receive a premium because they can stake their fund pools. In contrast, Ethereum ETFs are limited by liquidity requirements and cannot stake all of their held Ethereum.
Lee stated that the staking reward for Ethereum is 3%, which is expected to bring a 90% value increase to the company fund pool, with a corresponding multiplier of 1.9.
Currently, BitMine's mNAV trading multiplier is 1.13, according to Strategic ETH Reserve data.
Lee added, "And remember, ETFs and Ethereum ETFs cannot stake all their holdings due to liquidity requirements, so they will never achieve the staking multiplier they should."
Related: Bitcoin (BTC) spot ETF surges against the trend, while Ethereum (ETH) funds continue to bleed, as investor risk aversion rises.
Original article: “BitMine Splurges $65 Million on ETH, Chairman Claims Ethereum is Entering a ‘1971 Moment’”
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