Ethereum News Today: BitMine Becomes Largest Ether Holder After $2.1B 16-Day Blitz

Bitcoin mining firm BitMine Immersion Technologies has rapidly acquired over $2.1 billion in Ether (ETH) within 16 days, reestablishing itself as the largest Ether treasury company in the crypto space. The firm announced on July 18 that it purchased 566,776 ETH during the period, a move that positions it ahead of competitors like SharpLink Gaming and the Ethereum Foundation in strategic Ether holdings [1]. Tom Lee, BitMine’s managing partner and chairman, stated the purchase brings the company closer to its goal of acquiring 5% of the total ETH supply, which currently equates to approximately 6 million ETH valued at around $22 billion at current prices [1].

The surge in BitMine’s ETH purchases coincides with a broader trend of institutional entities and firms amassing large stakes in Ether, a practice that has intensified in recent months. According to Strategic Ether Reserves, BitMine now holds the largest corporate Ether reserve, surpassing SharpLink Gaming’s holdings of 360,807 ETH and the Ethereum Foundation’s 237,500 ETH. SharpLink Gaming, which reported a recent 79,949 ETH purchase, remains a close competitor, but BitMine’s aggressive accumulation has reshaped the landscape of Ether treasury strategies [1].

The move has also had a notable impact on BitMine’s stock price. Following its July 3 announcement of plans to acquire Ether, BitMine’s shares (BMNR) surged over 3,000%, reaching an all-time high of $135. This mirrors SharpLink Gaming’s earlier success, as its share price spiked 171% to $79.21 after disclosing its Ether pivot on May 27 [1]. The stock performance underscores the growing influence of cryptocurrency treasury strategies on equity markets, as companies increasingly diversify their assets into digital reserves.

Strategic Ether Reserves data reveals that 2.31 million ETH—representing 1.91% of the total supply—are now held in 61 strategic reserves, valued at $8.46 billion. This pales in comparison to Bitcoin’s strategic reserves, which account for 16.5% of the total supply and are valued at over $408 billion [1]. BitMine’s 5% target for ETH, if achieved, would surpass Michael Saylor’s company’s 2.9% stake in Bitcoin (607,770 BTC). However, Saylor has publicly committed to continuing Bitcoin accumulation, highlighting divergent approaches to digital asset treasuries between the two firms.

The rapid accumulation of Ether by BitMine raises questions about its potential impact on the asset’s supply dynamics. Unlike Bitcoin, which has a fixed supply, Ether’s circulating supply can fluctuate based on network activity such as burning transactions, a deflationary mechanism introduced through Ethereum’s EIP-1559 upgrade. If BitMine’s purchases reduce the circulating supply by locking up a significant portion of ETH, it could theoretically increase demand for the remaining supply, potentially influencing its price trajectory. However, such outcomes remain speculative and depend on broader market conditions.

The treasury arms race between firms like BitMine and SharpLink reflects a broader shift in how companies are treating cryptocurrencies. By treating Ether as a corporate asset rather than a speculative investment, these entities aim to hedge against traditional market volatility and capitalize on blockchain technology’s growing adoption. The success of these strategies hinges on the long-term stability and growth of the Ethereum network, as well as regulatory clarity in major markets.

As the competition for Ether treasury dominance continues, investors will closely monitor how these firms balance their digital asset acquisitions with operational performance. BitMine’s ability to convert its ETH holdings into staking rewards and liquidity may determine its sustained leadership in this space. Meanwhile, the Ethereum Foundation’s role as a significant holder adds a layer of institutional credibility to the asset class, potentially attracting further institutional interest.

Source: [1] [title: BitMine Is Largest Ether Holder After 16-Day Blitz] [url: https://cointelegraph.com/news/bitmine-is-largest-ether-holder-after-16-day-blitz]