According to the latest on-chain data, BitMine viewed the latest market downturn as an opportunity to further increase its exposure to Ethereum, the second largest cryptocurrency by market capitalization. In two separate new purchases, the Ethereum treasury company expanded its holdings of more than $199 million worth of Ether tokens.
BitMine now holds 3.08% of the total ether supply
In a recent post on social media platform This new accumulation cycle included two separate purchases; 41,946 ETH worth $130.78 million on Friday, December 5 and 22,676 ETH worth $68.67 million on Saturday, December 6.
This latest wave of acquisitions brings the Ethereum treasury company’s holdings to approximately $11.3 billion, solidifying its position as the world’s largest Ether holding company. With the continued accumulation of the largest altcoin over the past few months, BitMine now holds approximately 3.08% of the total Ether supply.
It is worth noting that BitMine’s aggressiveness in the market comes as the hype around digital asset treasuries (DAT) has died down. While crypto asset acquisitions have slowed among treasury companies, shareholders are losing significant amounts of value as the market slowdown continues to impact crypto-related stocks as well.
However, BitMine’s overall performance has been quite impressive, with the company announcing plans to pay the first-ever crypto dividend to shareholders. What’s interesting is that the Ethereum treasury company has a cash reserve of almost $900 million, which could be used for additional ETH purchases.
BitMine Buys the Dip While Ethereum Whales Profit
BitMine’s continued accumulation of Ether is evidence of its confidence in the long-term promise of the token. However, this aggressive buying activity has been somewhat opposite of what the market trend suggests.
Ethereum price is hovering around $3,000 after a slight correction from its recent local high around $3,200. According to on-chain data, mid-sized whales (holding between 1,000 and 10,000 ETH) maintained significant selling pressure in the market.
Meanwhile, Alphractal also revealed that large whales (with over 10,000 ETH) remained much more in a neutral and calm state, showing only a distribution of light.
Whales are generally considered among the most influential investors in the market, as their movements often provide insight into a coin’s trajectory. Although BitMine is considered a whale, due to its large holdings, it is interesting to see the company moving in the opposite direction to other relevant market players.
The price of ETH on the daily timeframe | Source: ETHUSDT chart on TradingView
Featured image from iStock, chart from TradingView
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