BitMine, the world’s largest corporate holder of Ether, took advantage of this weekend’s cryptocurrency market crash to buy the dip, signaling greater institutional confidence in Ether’s continued momentum.
The company said it acquired Ether (ETH) “more aggressively” during the market turmoil, pushing its total holdings to over 3 million ETH, or about 2.5% of the cryptocurrency’s total supply. The average purchase price for BitMine was $4,154 per token.
Over the past few days, BitMine has acquired 202,037 ETH worth approximately $827 million, the company said in Monday’s X issue. post.
This brought BitMine’s total holdings to $13.4 billion, which includes $12.9 billion in cryptocurrencies and moonshots, 192 Bitcoin (BTC), $104 million in cash and $135 million in shares of Nasdaq-listed technology company Eightco Holdings.
BitMine’s aggressive purchases could influence other corporate cryptocurrency treasuries to adopt similar long-term accumulation strategies.
The BitMine acquisitions come as the cryptocurrency market suffered a drastic correction on Friday, leading to $19 billion in liquidations over the weekend.
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BitMine accelerates its Ether accumulation plan
The latest purchases put BitMine “halfway” toward meeting its treasury goals.
“The liquidation of cryptocurrencies over the past few days has resulted in a decline in ETH prices, which BitMine has benefited from.” he said Tom Lee, president of BitMine and head of research at Fundstrat.
“We are now more than halfway to our initial goal of “5% ETH alchemy.”
“Volatility causes deleveraging, which can result in assets trading at significant discounts to fundamentals, or as we say, at a ‘significant discount to the future,’ and this creates benefits for investors at the expense of traders,” Lee added.
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BitMine shares are also popular with classic investors.
BMNR was ranked the 22nd most-traded stock on U.S. markets based on five-day average trading volume of more than $3.5 billion as of Friday.
Despite this, BitMine’s share price has fallen 11% in the last five days, According to to Google Finance data. The decline came days after Kerrisdale Capital took a miniature position on BMNR on Wednesday after criticizing the company’s business model as “on the road to extinction”.
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