Bitmine is planning to substantially expand its Ethereum holdings, taking a treasury of $2 billion to $4.5 billion with a major stock sale. The firm conducted a sales agreement with Cantor Fitzgerald to help enable this move.
Many companies are making huge ETH investments at the moment, generating record inflows and surging prices. A new all-time high for Ethereum is distinctly plausible, which seems encouraging for the mining firm.
Bitmine Bets Big on Ethereum
Bitmine was initially a Bitcoin mining firm, but this industry has become less profitable in recent months. Earlier this July, the company announced a bold $250 million Ethereum investment, joining a broad trend of institutional ETH purchases.
Today, Bitmine submitted a filing to offer substantially more company shares to buy even more Ethereum:
Bitmine currently owns $2 billion in Ethereum, but the company is planning to push this to $4.5 billion. It’s doing this through a sales agreement with ThinkEquity and Cantor Fitzgerald, a prominent Trump-aligned firm that has heavily invested in corporate crypto treasuries.
The company may be making a gamble, but institutional ETH investment is on the rise. This could help reduce the risks from major Ethereum stockpiling.
Since Bitmine first announced its new Ethereum policy, Peter Thiel’s fund bought a substantial stake in the firm, and Ark Invest channeled $175 million into it earlier this week. So far, today’s announcement has been bullish:
To be clear, this isn’t the only bullish sign. Bitmine evidently picked a good time to back Ethereum, as its weekly inflows are at an all-time high. Waves of corporate investment have buoyed the asset’s price, and a rally to a new all-time high might be possible.
Investors have raised fears of a bubble from corporate Bitcoin acquisitions, but ETH is a less saturated market. Compared to BTC, Bitmine may have more of a chance to directly influence Ethereum.
Bitwise predicts $20 billion in institutional ETH investment over the next year, and Bitmine would represent over one-fifth of this. That factor may enable real protection.
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