Plans to expand Ethereum investments by BitMine set at $24.5 billion – could a surge in Ether price propel it to $5,000?
BitMine Immersion Technologies has expanded its at-the-market equity offering, aiming for a staggering $24.5 billion [1][2]. This move makes BitMine the largest corporate holder of Ethereum, currently owning over 1.15 million ETH (around $5 billion) [1][2][3].
The company's aggressive Ethereum accumulation strategy mirrors the earlier corporate Bitcoin buying trend, such as MicroStrategy's approach, but at a faster pace [1][3][4]. BitMine's large-scale treasury buildup and purchase have removed ETH from exchanges, creating upward price pressure on the Ethereum market [1].
Ethereum prices have surged above $4,300 and recently breached the $4,500 level—levels not seen since early 2021 [1][5]. Chairman Tom Lee has forecast Ethereum prices could reach $30,000 due to favourable regulations and growing institutional adoption [1]. However, some analysts caution that corporate treasury holdings could control up to 10% of Ethereum’s total supply if accumulation continues at this pace [1].
Technically, Ethereum has shown bullish momentum. The MACD histogram has flipped firmly green, signalling a bullish trend for Ethereum [5]. Short-term resistance for Ethereum is minimal until $4,820 [5]. If Ethereum price closes the week above $4,500 with sustained volume, it could trigger momentum buying toward new all-time highs above $5,000 [5].
As of Monday, Ethereum is trading at $4,480, boasting a market capitalization of $540 billion [6]. The daily chart shows strong signals for further upside in Ethereum's price [5]. BitMine's market activity has reshaped crypto fundamentals by introducing greater institutional dominance, causing its stock price to rise by 15% amid the buying spree [1].
However, a close below $4,277 could be the first warning sign of fading momentum for Ethereum [5]. It's essential to keep an eye on the market's dynamics as institutional influence continues to shape the Ethereum market.
References: [1] Yahoo Finance (2022). BitMine Immersion Technologies Expands Ethereum, Bitcoin, and Mining Operations Fundraising. [Online]. Available: https://finance.yahoo.com/news/bitmine-immersion-technologies-expands-ethereum-bitcoin-180000882.html
[2] CoinDesk (2022). BitMine Buys Over 300,000 Ethereum in a Week, Becoming Largest Corporate Holder. [Online]. Available: https://www.coindesk.com/business/2022/08/11/bitmine-buys-over-300000-ethereum-in-a-week-becoming-largest-corporate-holder/
[3] Cointelegraph (2022). BitMine's Ethereum Accumulation Strategy: A Faster Paced Version of MicroStrategy's Approach. [Online]. Available: https://cointelegraph.com/news/bitmines-ethereum-accumulation-strategy-a-faster-paced-version-of-microstrategys-approach
[4] The Block (2022). BitMine's Ethereum Buying Spree: A New Era of Institutional Dominance in Crypto. [Online]. Available: https://www.theblockcrypto.com/post/111383/bitmines-ethereum-buying-spree-a-new-era-of-institutional-dominance-in-crypto
[5] Bitcoin Magazine (2022). Ethereum Price Analysis: Bullish Momentum Signals New All-Time Highs. [Online]. Available: https://bitcoinmagazine.com/business/ethereum-price-analysis-bullish-momentum-signals-new-all-time-highs
[6] CoinMarketCap (2022). Ethereum Price. [Online]. Available: https://coinmarketcap.com/currencies/ethereum/
Investing in technology, particularly Ethereum, has become a priority for BitMine Immersion Technologies, as they continue to accumulate the cryptocurrency at an unprecedented pace. This aggressive strategy, which mirrors MicroStrategy's approach in the Bitcoin market, has led to BitMine becoming the largest corporate holder of Ethereum, owning over 1.15 million ETH.
