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/
