BitMine Immersion Technologies (BMNR), a leading Ethereum-focused treasury firm, has maintained its weekly purchasing momentum for ether (ETH), acquiring a substantial 41,788 tokens last week, marking its largest weekly purchase of the year. This acquisition, valued at approximately $96 million, has increased BitMine’s total ether holdings to 4,285,125 tokens, representing about 3.55% of Ethereum’s circulating supply. Despite these additions, the firm has faced challenges as the recent downturn in crypto prices has deepened its unrealized losses, pushing its stock to a low not seen in seven months.
In a recent company update, BitMine reported its current holdings, which include 193 bitcoin (BTC) and significant cash reserves totaling $586 million. Additionally, the firm maintains a $200 million investment in Beast Industries and a $20 million stake in Eightco Holdings. However, the overall value of BitMine’s assets, including crypto, cash, and equity, has dipped to approximately $10.7 billion following a drop in ether’s price to around $2,300 over the weekend. As of Monday morning, the price saw a mild recovery, rising to around $2,360, although BMNR’s share price fell by 5%.
The ongoing market turbulence has left the firm facing an estimated $6 billion in unrealized losses. Despite the concerns, Chairman Thomas Lee highlighted that the current weakness in ether’s price is at odds with increased network activity, noting record highs in daily transactions and active addresses on the Ethereum blockchain. He pointed out that historically during downturns, such as the crypto winter of 2021-2022 and prior downturns in 2018-2019, Ethereum activity typically decreased, unlike the current trend.
Lee attributed the market’s struggles to the lingering impact of last October’s crypto crash and a recent rise in precious metal prices, which he believes has drained liquidity from the crypto sector. To adapt to the prevailing market conditions, BitMine has expanded its staking activities, with nearly two-thirds of its ether holdings—around 2.9 million tokens—now staked, which is projected to yield an estimated annualized revenue of $188 million.
Looking ahead, the firm’s strategy may not only help in mitigating losses but also in capitalizing on the evolving market landscape as interest in Ethereum continues to grow despite current market challenges.