While the crypto market is in a downturn, one party continues to expand. Bitmine announces another major purchase of hundreds of millions of dollars worth of Ethereum (ETH). The company has thus achieved a remarkable milestone.
Bitmine buys ETH during the dip
BitMine Immersion Technologies purchased approximately $300 million worth of Ethereum last week. The company reports this in a new press release. The listed company added 98,852 ETH to its holdings, bringing the total to over 4.066 million tokens.
Bitmine therefore owns 3.37 percent of the total ETH supply. The company itself calls breaking the 4 million coins mark “a crucial milestone”. At the same time, it remains committed to its ambition to eventually own 5 percent of all Ethereum.
The purchases took place in a period when the Ethereum price was under pressure. Last week, ETH briefly fell below $2,800. However, Bitmine continued to accumulate and sees the decline as a clear buying opportunity.
In addition to Ethereum, Bitmine also holds $1 billion in cash. The company’s total assets now amount to $13.2 billion, divided between crypto, cash and strategic investments.
According to data from StrategicEthReserve, Bitmine has been purchasing Ethereum every week since July. With this new purchase, the company continues that streak. This makes it the largest listed Ethereum holder.
Support from Cathie Wood and Ark Invest
Bitmine receives support from big names in the financial world. Cathie Wood, top investor and founder of Ark Invest, recently invested heavily in the company. During the recent crypto dip, her fund bought $17 million worth of Bitmine shares. It was Ark’s largest purchase that day.
Other crypto companies such as Coinbase and Circle were also purchased. Ark sees the decline in the prices of crypto companies as an opportunity to get in cheaply.
Ethereum ready for breakout?
Ethereum may have seen the worst of it and Bitmine could soon see a significant increase in its holdings again. Dutch analyst Michaël van de Poppe sees clear signals that ETH is preparing for a breakout higher.
In a new analysis, he states that the price is once again testing the crucial resistance, and that after several attempts a breakthrough is likely.
Van de Poppe mentions $3,650 to $3,700 as the next price target if the breakout is successful. This would represent an increase of approximately 21 percent over current levels.
Source: https://newsbit.nl/bitmine-slaat-weer-groots-ethereum-in-en-behaalt-cruciale-mijlpaal/
