BitMine Immersion Technologies’ Ethereum Treasury Approaches $8 Billion
BitMine Immersion Technologies’ Ethereum treasury has come close to $8 billion following the firm’s acquisition of nearly $900 million in ETH last week, amidst a price surge that propelled the asset to new record levels.
The company increased its balance sheet by more than 190,500 ETH, resulting in total Ethereum holdings of 1.71 million ETH, which is just under 1.5% of the complete token supply. In addition, BitMine augmented its cash and crypto holdings by $2.2 billion in just one week.
“This is the second week that BitMine has been able to raise capital from institutional investors at this pace, as we pursue the ‘alchemy of 5%’ of ETH,” stated BitMine Chairman Tom Lee. “At BitMine, we are leading our crypto treasury peers by both the velocity of raising crypto NAV per share and by the high trading liquidity of our stock.”
BitMine is among a small but emerging group of companies that have shifted their focus towards establishing Ethereum treasuries. It currently ranks as the second largest publicly traded crypto treasury, trailing only behind Michael Saylor’s Strategy.
Last week, Lee and his team enhanced the treasury by $1.7 billion with an addition of over 373,000 ETH, enabling it to surpass Bitcoin miner and BTC treasury MARA Holdings in dollar value.
Ethereum reached an all-time high of nearly $5,000 over the weekend, marking the second occurrence in three days that it set a new record. However, the second largest cryptocurrency by market cap retreated early Monday to trade at $4,615, reflecting a decrease of 4.3% over the previous 24 hours.
These significant additions have resulted in a 75% increase in its crypto net asset value (NAV) per share, which represents the ratio of its crypto holdings in relation to outstanding stock shares, since the end of July.
Treasury companies are frequently evaluated by their mNAV—or the market to net-asset-value of the firm—which compares the market capitalization with the underlying asset holdings. This metric, popularized by Saylor, typically influences the decisions a treasury firm makes to expand its crypto holdings. For example, if a firm’s mNAV trades at a premium or above 1.0, it can issue stock to raise funds. If it’s below 1.0, the firm may sell the asset to buy back shares.
According to data from StrategicETHReserve.xyz, BitMine currently trades at approximately a 1.0 mNAV.
Similar to Strategy’s ongoing quest for Bitcoin, BitMine has no plans to slow down its Ethereum purchases, having recently raised the target to $20 billion for acquiring the second largest crypto asset.
“We continue to believe Ethereum is one of the biggest macro trades over the next 10-15 years,” Lee emphasized. “Wall Street and AI moving onto the blockchain should lead to a greater transformation of today’s financial system. And the majority of this is taking place on Ethereum.”
Ethereum recently reached a new all-time high just below $5,000 over the weekend but experienced a decline of 2.9% in the last 24 hours, trading at $4,658.
Shares of BMNR increased by 0.2%, trading at $53.52, reflecting a 36% rise over the month.
