Ethereum's wealth held by BitMine surpasses $8 billion, accounting for approximately 1.5% of the total Ethereum supply.
In a significant move for the cryptocurrency market, BitMine Immersion Technologies has made a strategic purchase of Ethereum, marking a potential turning point for the digital asset.
Tom Lee, chair of BitMine's board, has compared this moment to the U.S. moving away from the gold standard in 1971, likening the U.S. dollar to a "synthetic" currency. Lee sees a similar transformation happening with Ethereum, as it becomes the chain of choice for Wall Street to build its financial rails and the financial system, as well as AI.
BitMine's purchase of 153,000 Ethereum, valued at around $8.1 billion, makes the company the largest corporate holder of Ethereum. This purchase is a $655 million step towards BitMine's goal of owning 5% of Ethereum's supply.
The ratio of Ethereum to Bitcoin stood at 0.038 on Monday, which is still below an 8-year average of 0.047. On Ethereum's best day relative to Bitcoin in November, 2021, 1 Ethereum could be exchanged for roughly 0.085 Bitcoin, according to TradingView. However, Ethereum dipped to $4,300 on Monday, showing a 0.5% decline over the same period.
Despite this dip, the future looks promising for Ethereum. Not only should it recover to the long-term average, it should probably get to the all-time high ratio, and arguably exceed it. This is because of the passage of the GENIUS Act this summer, which is driving on-chain adoption, and the expected boom in innovation in financial services, with the adoption of stablecoins and tokenized equities being possible outcomes.
Besides BitMine, FG Nexus is also one of the largest companies holding Ethereum. Other top traders or holders are not explicitly named in the search results, but major cryptocurrency exchanges like Binance and brokers such as Trade Republic facilitate large Ethereum trading volumes.
AI could also build on the blockchain in the next decade, according to Tom Lee. This could further drive the adoption and value of Ethereum.
However, it's important to note that the stock price of BitMine fell 3.5% to $42.11 on Monday, according to Yahoo Finance. This could indicate that the market is not yet fully convinced about the potential of Ethereum.
Assuming Bitcoin's price reaches $250,000, Ethereum would be worth $12,000, if the 8-year average holds true. This shows the significant potential for growth in the value of Ethereum.
In conclusion, BitMine's massive purchase of Ethereum marks a pivotal moment for the cryptocurrency. As more companies and institutions invest in Ethereum, we can expect to see further growth and innovation in the blockchain technology.
