BitMine, the world’s largest Ethereum (ETH) corporate treasury firm, scooped up a mind-boggling $820 million worth of ETH last week following a sharp market correction. The firm now holds 3.24 million ETH, worth some $1.2 billion. This represents 2.7% of ETH’s total supply – and the company is not stopping here. It aims to capture 5% of the supply.
Regarding last week’s buying spree, BitMine’s Chairman Tom Lee stated:
“The crypto market saw one of its largest deleveraging events ever last week, and this put downward pressure on ETH prices…Given the expected Supercycle for Ethereum, this price dislocation represents an attractive risk/reward.”
Lee noted that that Ethereum is a “truly neutral” chain likely to see growing institutional adoption, a view the company has used to justify its bid to reach 5% of ETH’s supply over time.
BlackRock shifts to Ethereum
Meanwhile, the world’s largest asset manager, BlackRock – with $13.5 trillion under management – has started shifting some crypto allocations from Bitcoin to ETH. According to reports, BlackRock has consistently directed more fresh capital into ETH than BTC over the past year.
“As a bellwether for institutional money, this move could prompt other big players — like pension funds and hedge funds — to pile in,” 24/7 Wall St reported in a recent article.
“BlackRock’s research arm highlights ETH’s deflationary mechanics post-Merge — the major update to Ethereum’s consensus mechanism that switched from proof-of-work to proof-of-stake — where transaction burns outpace issuance, potentially driving scarcity.”