Ether treasury company BitMine Immersion Technologies significantly increased its ETH holdings during last week’s market correction, signaling continued confidence in its long-term strategy despite mounting unrealized losses.
Business revealed Monday that it acquired 40,613 ETH (ETH) last week, bringing its total holdings to over 4.326 million ETH, worth approximately $8.8 billion at current prices.
According to DropsTab, despite accumulation, BitMine is currently deep underwater at its position in the ether data.
A significant portion of its holdings, 2,873,459 ETH, are listed on the Ethereum network. Staked ETH is locked to facilitate secure the blockchain and in return receives staking rewards paid in additional Ether, providing the company with a profit-based revenue stream.
The company said on Monday that its crypto assets, total cash holdings and moonshots are worth $10.0 billion. According to a filing.
While BitMine’s treasury strategy has faced criticism, the company continues to generate operating cash flow from Ethereum staking rewards and from its legacy immersion-cooled data center operations that provide infrastructure services for high-performance computing.
BitMine CEO Tom Lee, co-founder and chief investment officer of Fundstrat Global Advisors defended strategy, arguing that the company’s structure is designed to track the price of ether. As a result, the company’s portfolio and stock performance are expected to decline during broader market declines and improve as ETH prices rise.
This volatility has been reflected in BitMine’s stock. The stock is down more than 31% in the last month and about 60% in the last six months.
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Liquidations are rising, but Ether treasury companies are resisting sales
The price of ether, along with the broader cryptocurrency market, has been hit by major liquidations since the October crash that resulted in about $19 billion in forced sales. Since then, prices have been on a steady downward trend, with selling pressure building in waves in November and again in behind schedule January.
As previously reported by Cointelegraph, prolonged market tensions have prompted ether-focused investment firm Trend Research to significantly reduce its exposure to ETH as part of a broader risk management strategy.
Still, most Ether treasuries have so far resisted selling in the face of weakness. Industry data can be seen that while no company other than BitMine Immersion Technologies has added Ether in the last 30 days, the more than two dozen companies with ETH on their balance sheets have largely maintained their positions.
According to CoinGecko, the only exception was Quantum Solutions, which offloaded approximately 600 ETH during the same period.
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