BitMine Immersion Technologies expanded its Ethereum position again last week as digital asset treasuries across the sector reduced exposure. The firm said it acquired 96,798 in Ethereum through last week. This move extended its buying streak despite sharp declines in crypto prices and market valuations.
BitMine Rises Above Treasury Pullbacks
According to a press release, BitMine’s overall holding rose to 3.73 million ETH. Based on recent market levels, the stash held an estimated value of about $10.5 billion. The company kept on accumulating even when most other digital asset treasuries began to pause purchase plans or switched to selling during the market crash.
Digital asset treasuries de-risk as lower prices put pressure on balance sheets. Many halted new additions. Others started selling their holdings to close the discount between their stock prices and net asset values. Such moves were seen as cautious, given that the sector continued to swing.
BitMine had so far been one of the few companies still purchasing. The company reportedly faces above $4 billion in unrealized losses on its Ethereum holdings. Long-term exposures in more traditional treasuries have been a drag across the industry given weakness in markets.
Ethereum Momentum Tied to Fusaka Upgrade
BitMine chairman Thomas Lee indicated that market conditions were the cause for the firm stepping up its acquisition pace. He also called attention to Ethereum’s forthcoming Fusaka upgrade. The upgrade will be going live on Dec 3. It will aim to increase the scalability and security of all parts of the Network.
The broader crypto market had found its stability more than seven weeks after the October 10 crypto market crash, Lee added. The rise supported the firm’s move to increase weekly purchases by 39%, he added.
He also pointed to policies the Federal Reserve took in December. The central bank is preparing to stop shrinking its balance sheet and is forecast to reduce interest rates on Dec. 10. These steps continue to be important signs for businesses watching the economic tides.
BitMine’s recent move comes as the market turned back down. In pre-market trading, the company’s shares had fallen 7.7%. Ethereum also dropped by roughly 8.06% over the past day and is trading slightly around $2,769.
Source: https://coingape.com/bitmine-acquires-96798-eth-ahead-of-ethereum-fusaka-upgrade/
