BitMine Immersion Technologies (BMNR), the Ethereum-focused digital asset treasury firm, said on Monday that it acquired more than 54,000 ether. last week worth around $173 million at current prices.
The company now holds nearly 3.6 million ETH, approaching 3% of the token’s outstanding supply, along with a small stash of bitcoin and shares in Worldcoin-focused treasury firm Eightco (ORBS). It also increased 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 president and Fundstrat co-founder Thomas Lee attributed the current cryptocurrency price weakness to a sharp drop in liquidity, possibly caused by an injured market maker withdrawing trades following the October 10 crash.
“When a market maker has a ‘hole’ in its balance sheet, it is trying to raise capital and is reducing its liquidity functions in the market, Lee said, likening the situation to a kind of “quantitative tightening” (QT) for crypto assets. “In 2022, this QT effect lasted 6 to 8 weeks,” he said.
Despite the current downturn, BitMine does not believe cryptocurrencies have reached a cycle peak yet, Lee said. In its November note to shareholders, it argued that structural factors could push the cycle peak into 2026 or later. He also noted the tokenization of assets such as stocks, bonds and real estate on the Ethereum blockchain as a key trend to watch, calling it “a major unlock” for the financial system.
Read more: Tom Lee says Ether is entering a ‘supercycle’ similar to Bitcoin; Critics reject
