Bitmine Scoops 17,242 ETH as $20B Liquidity Crunch Hits Market Makers
Bitmine - the company that used to be a mining outfit - has really turned up the heat on its Ethereum buying spree, dumping 17,242 ETH...
Quick overview
- Bitmine has significantly increased its Ethereum holdings, purchasing 17,242 ETH valued at $49 million, bringing its total to nearly 3.5 million ETH worth over $10 billion.
- The company aims to acquire about 5% of all Ethereum in circulation, using funds from share sales, cash reserves, and staking rewards.
- Despite market volatility and liquidity concerns, Bitmine remains committed to Ethereum, viewing price dips as opportunities for long-term investment.
- Chairman Tom Lee highlights the challenges faced by major market makers in the current crypto landscape, suggesting a prolonged recovery period.
Bitmine – the company that used to be a mining outfit – has really turned up the heat on its Ethereum buying spree, dumping 17,242 ETH on the market, valued at a cool $49 million, according to Onchain Lens on November 21st. This latest purchase gives the firm almost 3.5 million ETH, worth a staggering $10 billion+, putting them firmly in second place behind Strategy in terms of crypto holdings.
- The price of Ethereum went from over $4,000 in the early days of October to a mere $3,000 in mid-November – a pretty steep drop.
- Bitmine seems to think that when the market dips, that’s just a chance to pick up some more ETH for the long haul.
- Bitmine does its buying through big over-the-counter outfits like FalconX and BitGo – the big boys.
Bitmine’s goal is to acquire about 5% of all Ethereum in circulation. To fund this accumulation, they’re using cash raised from share sales, their own cash on hand, and rewards from staking. This shift from mining to building a large ETH stash is a sign that Bitmine is serious about holding onto its ETH for the long game.
Market Makers Worry About Liquidity
Tom Lee, Bitmine’s chairman and co-founder of Fundstrat, spoke to the press on November 20th about the current state of the market and how major market makers are struggling to find their footing. According to Lee, the volatility we’re seeing in the crypto market stems from the big boys still recovering from the October 10th crash, which triggered $20 billion in liquidations.
- Some of these firms are cutting back on trading activity to free up some capital.
- Others are having to shrink their balance sheets just to keep their heads above water.
- Bitcoin and Ethereum are warning signs that liquidity is not all well.
Lee drew a comparison with what happened in 2022. Usually, it takes about eight weeks to get things sorted, but he reckons it might take a few more weeks before things go back to normal, which isn’t helping the prices right now.
Bitmine Stays Focused On Ethereum
But despite all the market wobbles, Bitmine is sticking with Ethereum as one of its core digital assets. They point to Ethereum’s role in helping sort out finance, run smart contracts, and issue tokens, which is important in the world of crypto. And even though the market is a bit screwy at the moment, Bitmine’s accumulation strategy is all about long-term potential.
- Bitmine ensures its ETH purchases are funded in a way that won’t spook the market.
- For Bitmine, price dips are opportunities to get in on the action, not a reason to panic.
- Steady as she goes – that’s the Bitmine approach to Ethereum buying.
Bitmine’s approach to all this is a rare combination of long-term thinking and short-term market nous – not many firms could pull that off during turbulent times.
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