BitMine Boosts Ethereum Holdings With $199 Million Buy as Market Turns Bearish

• BitMine purchased $199 million in Ethereum over two days, increasing its total holdings to $11.3 billion.
• The company now controls 3.08% of total ETH supply, moving closer to its 5% accumulation target.
• Despite declining corporate Ethereum purchases, BitMine acquired 679,000 ETH last month, outpacing all other institutional investors.

BitMine Immersion Technologies, the largest corporate holder of Ethereum globally, is aggressively accumulating more Ethereum, despite the fact that some of the biggest short-term investors in the market are preparing for a short-term decline in value.

As per Lookonchain’s on-chain analysis, $199 million was spent on Ethereum within two days alone by BitMine. The entity acquired $68 million on Saturday and then $130.7 million on Friday. After this recent increase, the total Ethereum reserves held by BitMine amount to $11.3 billion, staking 3.08% of the entire Ether supply.

The company is now nearing its aim for 5% of all ETH that is in circulation. This is based on figures from StrategicEthReserve.

Source: Strategicethreserve.xyz

However, BitMine is not slowing down either. It is still holding $882 million in cash, which can be used for further investments in Ethereum. This continued investment shows the faith they have in Ethereum, even though corporate demand for Ethereum has diminished.

BitMine Leads Despite Ethereum Decline

The activities on the digital assets treasury have been declining over the previous months. Corporate Ethereum purchases fell 81% from 1.97 million ETH in August to 370,000 ETH in November.

Despite this decline, however, BitMine remained the leading player in the industry. In the last month alone, for instance, the company accumulated 679,000 ETH, which was estimated at $2.13 billion, outpacing all other corporate acquirers.

As BitMine continues to grow its influence, blockchain research platform Nansen reveals that the “smart money” sector of the market is gearing up for a short-term drop. Historically speaking, this sector has produced outstanding profits for investors.

Source: Nansen

These investors over the course of the last 24 hours have made additions of $2.8 million to their short positions and now have a total short exposure to Ethereum of $21 million. They foresee the ETH value falling soon.

Also Read | Ethereum Hits $6 Trillion Stablecoin Volume and Signals Long-Term Growth

Massive ETF Outflows Contrast BitMine Accumulation

Another important indicator that can be taken as a signal for weaker near-term demand is the current lack of interest in spot Ethereum ETFs. As reported by Farside Investors, ETH ETFs registered $75.2 million outflows on Friday, confirming a second consecutive day of outflows. It is worth noting that November closed with a huge withdrawal of $1.4 billion from these instruments.

Source: Farside Investors

This contrast between the massive cumulation at BitMine and the more conservative approach taken overall within the market represents the widening gap between investment expectations. While big investors prepare for potential reversals within the market, the approach of BitMine is all about the larger landscape,  approaching one of the biggest single-entity ETH holdings ever seen.

Also Read | Ethereum Price Analysis: Will ETH Maintain $3,000 Support or Drop to $2,800?