Ethereum Treasury Company, BitMine, Continues To Buy ETH Dip

Ethereum treasury company BitMine has doubled down on Ether acquisition despite the decline in value. According to on-chain data, the company has bought 104,336 ETH for $415 million.

Onchain analyst Ember_CN identified the transactions. They noted that five new wallets received the ETH from Kraken and  BitGo.

BitMine Nears Goal, but its Ethereum Treasury Holdings Remain Underwater

With the latest purchase, BitMine reaffirms its commitment to purchasing ETH. The company had earlier disclosed on Monday that it had been busy accumulating ETH during the dip.

It stated at the time that it purchased 179,251 ETH in the first week of October and 202,037 ETH in the second week. The Ethereum treasury company has not officially announced the latest purchase. However, it has now acquired 485,624 ETH so far in October.

Meanwhile, its latest report shows that it currently holds 3.03 million ETH at an average cost of $4,154. Although the most recent acquisition may slightly reduce the cost, it remains higher than the current value of ETH.

Still, the unrealized losses are unlikely to bother the company. It has set a target of owning 5% of the total ETH supply, which amounts to around 120 million tokens. It is already halfway there as it now controls 2.5% after increasing its ETH treasury by almost 41% in 30 days.

Unsurprisingly, BitMine is the largest Ethereum treasury company by a large margin. Its closest competitor is Sharplink Gaming, which has only around 840,000 ETH worth $3.36 Billion.

BitMine Chairman Tom Lee says ETH can cross $10,000 in 2025

Meanwhile, BitMine’s accumulation is a direct result of the company’s bullish sentiment about the altcoin. Despite falling more than 20% from its peak in August, the company executives are optimistic about ETH’s potential.

Ethereum Treasury company BitMine’s Chairman, Tom Lee, recently made a statement. He stated on a Bankless DAO that ETH can reach $12,000 by the end of 2025. He noted that such levels would only represent new price discovery for ETH.

He doubled down on this in his chairman’s message. He also noted that recent volatility is an opportunity to buy ETH at a discount.

He said:

His bullishness on ETH aligns with that of BitMex founder Arthur Hayes. He has also predicted that ETH could reach $10,000 by the end of this year.

80% of the ETH Circulating Supply is in Profit

While not all analysts share the optimistic prediction of $10,000, sentiments around ETH remain positive. Crypto analyst Ted Vision noted that ETH fundamentals remain very good.

According to him, Santiment data shows that more than half of the ETH total supply is held by ten non-exchange holders. These are custodians, whales, and staking pools with no reason to sell.

Interestingly, over 80% of the circulating supply is also in profit. However, the Network Realized Profit and Loss (NPL) is negative. On the other hand, the P/L ratio is currently between 1.0 and 1.5. This indicates a neutral flow.

Meanwhile, the 30-day moving average for Exchange Inflow/Outflow shows more outflows. Around 174,000 ETH has left exchanges, while only 152,000 ETH has entered.