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Crypto Giant Buys Ether Amid Price Plunge
3 Dec
Summary
- BitMine acquired 96,798 ether last week, continuing its buying spree.
- The firm holds 3.73 million ether, making it the largest ETH treasury.
- Despite losses, BitMine cites Ethereum upgrade and Fed policy as buy motivators.
BitMine Immersion Technologies, under the guidance of Fundstrat's Thomas Lee, has continued its aggressive acquisition of ether (ETH), purchasing 96,798 tokens last week. This latest purchase has expanded the firm's total ETH holdings to 3.73 million, solidifying its status as the premier Ethereum treasury company. The firm's strategic decision to buy comes at a time when many digital asset treasuries are facing pressure from declining crypto prices and market volatility.
Despite an estimated $4 billion in unrealized losses on its substantial ETH holdings, BitMine remains a notable exception among firms hesitant to increase their crypto exposure. Thomas Lee highlighted the upcoming Fusaka upgrade, scheduled for December 3, as a key factor driving the increased acquisition pace. This upgrade is expected to enhance the Ethereum network's scalability, security, and overall usability, signaling a positive outlook for the cryptocurrency.
Adding to the bullish sentiment, Lee pointed to macroeconomic indicators, anticipating the Federal Reserve will halt quantitative tightening this month and implement interest rate cuts in December. These factors, combined with recent stabilization in crypto markets following an October crash, are viewed as significant tailwinds for ETH prices. Consequently, BitMine escalated its weekly ETH purchases by 39%, demonstrating strong confidence in Ethereum's future performance.
