Tom Lee-backed Bitmine Immersion Technologies (BMNR) gained in early morning trade on Monday after the company announced its biggest purchase of Ethereum (ETH) this year, acquiring over 65,000 ETH tokens.
"Bitmine has maintained the increased pace of ETH buys in each of the past three weeks, as our base case is ETH is in the final stages of the 'mini-crypto winter,'” said chairman Lee. “In the past week, we acquired 65,341 ETH compared to an average of 45k to 50k weekly prior to that.”
Lee added that crypto, and Ethereum in particular, have demonstrated characteristics of a good “war time” store of value, especially when compared to the traditional safe haven, gold. He also anticipated that the CLARITY Act would be signed into law by the end of April, which he forecast would be a positive catalyst for Ethereum’s price.
BMNR’s stock rose as much as 2.3% in pre-market trade. On Stocktwits, retail sentiment around the firm flipped to ‘bearish’ from ‘bullish’ territory over the past day while chatter dipped to ‘high’ from ‘extremely high’ levels.
Meanwhile, Ethereum’s price rose 3.1% in the last 24 hours to over $2,100 amid a broader rally in the cryptocurrency market. Retail sentiment around the leading altcoin on Stocktwits fell to ‘bearish’ from ‘neutral’ territory over the past day and message volume reduced to ‘normal’ from ‘high’ levels.
The company’s Ethereum holdings now total 4.6 million ETH, bought at an average price of $2,072 per ETH. This accounts for around 3.86% of the total Ethereum supply in circulation. Bitmine’s goal is to reach 5%.
The digital asset treasury (DAT) also holds 196 Bitcoin (BTC), a $200 million stake in Beast Industries, a $95 million stake in Eightco Holdings (ORBS) and total cash of $1.1 billion.
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