Bitmine Immersion Technologies announced on October 12 that it bought about 12,532 more Ethereum last week, taking its total holding to about 6.03 million ETH. That is a huge amount for one company, and it puts Bitmine very close to a goal it has talked about for months.
The company now owns about 4.9% of all Ethereum in circulation, out of a total supply of about 122.1 million ETH. Bitmine says it is about 99% of the way to its target of holding 5% of the supply, a goal it has reached in about 15 months of steady buying.
Bitmine's total crypto, cash and marketable securities are now worth about $16.2 billion, including about $612 million in cash and securities. Most of its Ethereum is not sitting idle: about 5.07 million ETH, worth around $12.9 billion at about $2,544 per ETH, is staked, which is roughly 84% of its holding.
For traders, this matters because such a large holding locked in staking means less Ethereum is freely available to sell on exchanges. Ethereum was trading near $2,550, holding above $2,500, while traders wait for the big US inflation report this week. A buyer this size can support the price, but it also creates concentration risk if the company ever changes its plan.
Bitmine chairman Tom Lee has said the company will keep buying Ethereum every week as part of its long-term treasury strategy, backed by big institutional names. Traders will now watch whether Bitmine crosses the 5% mark soon, and whether other companies copy this kind of large Ethereum treasury plan.
Read also: BREAKING: Ethereum Beats Bitcoin Ahead of Big US Inflation Report — Crypto Stocks Jump as Oil Falls
This post is news only, not financial advice. Always do your own research before buying or selling crypto.
Sources: Morningstar / PR Newswire, Cointime, CoinDesk
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