Why Is Cathie Wood Buying Bitmine (BMNR) Stock Despite 8% Crash?
Highlights
- Cathie Wood's confidence in Bitmine comes amid aggressive ETH treasury plan by Tom Lee.
- Tom Lee's Bitmine Technologies now holds 1.7 million ETH valued at $7.81 billion.
- The firm plans to boost its at-the-market equity program from $4.5 billion to $24.5 billion for further ETH purchases.
Cathie Wood is enthusiastically buying the BMNR stock, of Tom Lee’s ETH treasury firm Bitmine Technologies. On Wednesday, August 27, Wood’s asset management firm Ark Invest purchased 339,113, BMNR shares, worth $15.6 million, despite the price crashing by 7.85%. This highlights growing confidence in Tom Lee’s ETH acquisition plan for the company.
Cathie Wood Buys $15.6 Million of Bitmine Stock
Cathie Wood’s Ark Invest added $15.6 million worth of BitMine Immersion shares on Wednesday across three of its ETFs. The asset manager took advantage of the BMNR stock dip by purchasing the stock via different Ark Invest funds. Cathie Wood started buying BMNR shares a few weeks before, amid Tom Lee’s push with aggressive ETH accumulation.
According to the firm’s daily trading report, the ARK Innovation ETF (ARKK) purchased 227,569 shares, while the ARK Next Generation Internet ETF (ARKW) picked up 70,991 shares. The ARK Fintech Innovation ETF also participated in the buying activity. Today’s purchase comes on top of the 1 million BMNR shares already held by Ark Invest.
Despite the recent selling pressure, the Bitmine stock is up by more than 750%, ever since the firm announced its ETH Treasury plans. As per Strategic ETH Reserves, the Tom Lee firm holds a total of 1.7 million ETH, worth more than $7.81 billion, as of the current Ethereum price. Furthermore, billionaire investor Peter Thiel has also invested more than $500 million in the company last month.
Earlier this month, in August, BitMine disclosed in an SEC filing that it plans to increase its at-the-market equity program from $4.5 billion to $24.5 billion to support additional ETH purchases.
Tom Lee Expands His ETH Treasury Plan
Tom Lee is emerging as the Michael Saylor of the Ethereum community, with his firm’s aggressive ETH treasury accumulation. Earlier this week, the firms added another $800 million worth of Ethereum, taking their total holdings to 1.7 million Ethereum. This is more than double the ETH held by SharpLink Gaming (NASDAQ: SBET), at 797,000 ETH.
Following the recent ETH price pullback to $4,300, Tom Lee commented that the bottom is already in for the altcoin. The veteran investor predicts a 20% ETH price rally ahead by setting up target of $5,500. Following its all-time high last week, ETH is now consolidating around $4,500 level.
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