Ethereum reserve at BitMine surpasses the $2 billion milestone
BitMine Immersion Technologies, a company that was once a traditional Bitcoin mining operation, has announced an aggressive pivot towards Ethereum accumulation. The institution has set a goal to acquire and stake 5% of the overall Ethereum supply, a significant portion of the cryptocurrency's total supply.
The company's strategy includes staking Ethereum tokens, a process that helps secure the Ethereum network and earn rewards. BitMine measures its performance based on ETH held per share, combining reinvestment of cash flows, capital market activities, and staking yields.
Thomas Lee, the chairman of BitMine's board of directors, previously drew parallels to MicroStrategy's Bitcoin holdings. Lee, who serves as the co-founder and head of research at Fundstrat, a global macro research firm, has been a vocal advocate for digital assets.
In July 2021, BitMine Immersion Technologies completed a $250 million private placement as part of an "asset light treasury strategy." This move has allowed the company to amass a substantial amount of Ethereum, surpassing $2 billion in holdings. As of the latest update, BitMine Immersion Technologies now holds 566,776 ETH.
The CEO of BitMine, Jonathan Bates, stated, "We are committed to Ethereum's continued growth and look forward to advancing our Ethereum treasury strategy." Bates' comments reflect the company's bullish sentiment towards Ethereum, a sentiment that is shared by many in the cryptocurrency industry.
BitMine's Ethereum accumulation strategy mirrors approaches taken by Bitcoin treasury companies. The company's holdings have expanded more than 700% beyond its initial funding proceeds, demonstrating the success of this strategy. Each Ethereum token in BitMine Immersion Technologies' holdings is valued at $3,643.75, reflecting the current market price of Ethereum.
The institution's ambitious goal of acquiring and staking 5% of the total supply of Ethereum is not yet explicitly mentioned in the available search results regarding the July 2021 update. However, with its significant investment in Ethereum and its commitment to the cryptocurrency's growth, BitMine Immersion Technologies is undoubtedly a force to be reckoned with in the world of digital assets.
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