BitMine Immersion Technologies (BMNR), the digital investment company focused on Ethereum, said on Monday that it acquired over 54,000 ether last week worth about $173 million in current prices.
The firm now holds nearly 3.6 million ETH, closing in on 3% of the token’s outstanding supply, along with a small bitcoin stash and equity in Worldcoin-focused treasury firm Eightco (ORBS). It also raised its cash holdings to $607 million, up from $398 million last week.
BMNR shares fell 2.6% on Monday to their weakest level since August.
BitMine chairman and Fundstrat co-founder Thomas Lee attributed the current weakness in crypto prices to a sharp drop in liquidity, possibly caused by an injured market maker withdrawing operations after the October 10 crash.
“When a market maker has a ‘hole’ on their balance sheet, they seek to raise capital and reduce their liquidity functions in the market, Lee said, comparing the situation to a kind of “quantitative tightening” (QT) for crypto assets. “In 2022, this QT effect lasted for 6-8 weeks,” he said.
Despite the current downturn, BitMine does not believe crypto has reached a cycle peak yet, Lee said. In his November note to shareholders, he argued that structural drivers could push the cycle peak into 2026 or later. He also pointed to asset tokenization such as stocks, bonds and real estate on the Ethereum blockchain as a key trend to watch, calling it “a big unlock” for the financial system.
Read More: Tom Lee Says Ether Is Entering Bitcoin-Like ‘Supercycle’; Critics push back
