Bitcoin Miner surprised with its own Ethereum reserve, picks up Fortuin

It is mainly Bitcoin (BTC) that attracts attention among many companies. Take companies such as Strategy, Twenty One Capital and the Japanese metaplanet that each have ten to hundreds of thousands of bitcoins. But Ethereum (ETH) is also increasingly popular. For example, an American Bitcoin miner has decided to buy huge amounts of ETH.

Bitmine follows stablecointrend

Bitmine Immersion Technologies is originally an American bitcoin mining company, but it is now going to the second largest crypto coin. The company announces a capital injection of no less than $ 250 million in its own ‘Ethereum Corporate Treasury.’

With the current ETH rate of $ 2,463, Bitmine can buy a large amount of tokens. In total around 101,500 ETH.

The money was collected through a so -called “private placement.” This is a form of financing in which a company sells shares or bonds directly to a limited group of investors, without the intervention of the stock market. It involved a total of 55,555,556 shares. They were sold for $ 4.50 each.

Why this striking step? That has to do with the craze about stablecoins. Thomas Lee, chairman of the Board of Directors at Bitmine, calls “Stablecoins the Chatgpt of Crypto.” That hype is already visible at companies such as Circle, the publisher of the USDC-Stablecoin. The share increased by no less than 750 percent after his IPO last month.

Lee also says that “the majority of the stablecoin transactions take place on Ethereum”. According to him, that can only mean one thing. An increase in Stablecoins will also work on the use and value of Ethereum.

Ethereum gains terrain thanks to Stablecoins

Bitmine is not the first company to set up an Ethereum reserve. Earlier in June we also saw that the sports bet company Sharplink Gaming made a big purchase. They bought more than 463 million dollars in tokens. That amounted to a total of 176,271 ETH. With that, Sharplink became the largest listed holder of ETH in the world in one fell swoop.

Another bitcoinminer, bit digital, also tacked. The company has decided to phase out its mining practices and exchange for Ethereum investments. This change of course initially led to a fall in the share, by almost 19 percent in five days.

The enthusiasm in Stablecoins, and therefore Ethereum, has to do with the American Genius Act. This bill offers clear regulations for Stablecoins. Among other things, publishers are obliged to maintain fully covered dollar reserves. That clarity ensures that companies know where they stand and can innovate.

But the law is not there yet. After approval of the Senate, the law still has to pass the House of Representatives.