Tom Lee’s BitMine Buys $130 Million ETH Amid Ethereum Crash

BitMine, led by Tom Lee, expanded its Ethereum holdings to 1.174 million ETH following its latest purchase during a sharp price drop.

BitMine Expands Ethereum Holdings to $5.26B Amid Market Decline

Arkham data shared by Lookonchain on X reveals that BitMine purchased an additional 28,650 ETH worth $130 million. This increased its total Ethereum holdings to 1.174 million ETH.

This can be estimated at around $5.26 billion based on current market price. This further proves that BitMine is one of the biggest companies holding Ethereum.

According to blockchain data from Arkham, the transaction was made by over-the-counter (OTC) addresses. Then, it was moved to WalletSimple storage system owned by BitMine.

Even with the market crash today, aggressive acquisition of ETH by BitMine is evidence of a long-term belief Ethereum’s value. Tom Lee is one of the most bullish analysts in the crypto environment. He is using the current drop in crypto prices to increase BitMine’s ETH portfolio.

It is similar to previous institutional accumulation trends where large buyers make their purchases when an asset’s price drop in the short term. On-chain transaction data suggests that there were a number of large ETH transfers into BitMine wallets in a short period of time. This suggests it was a coordinated purchase.

This swift expansion in Ethereum exposure confirms the overall investment strategy of this company. It focuses on purchasing digital assets when they cost less during short-term drops. One of the effects of such large OTC purchases includes acquiring large asset supply without triggering rebalancing on the order book.

BMNR is trading at $57.81 as of this writing, decreasing its previous trading value of $60.45 by 4.37%. Yet, BMNR has increased by 34.01% in the last five days and 20.74% in the last month.

ETH Shows Gains in the Long Term Amid Daily Price Crash

The accumulation happened amid a sharp decline in Ethereum price. Current ETH price is $4,394, showing that it decreased by 3.45% over the last 24 hours. But it’s way below its last close of $4550.9.

The sell pressure spread faster throughout the day, causing price to drop drastically after reaching around $4,640. However, over the past week Ethereum remains up 12.22%, while monthly gains stand at nearly 40%.

The recent performances of Ethereum are strong compared to historical performances. ETH has increased by 31.77% to date and 62.94% in six months. Over the last five years, the asset has increased by over 900% indicating significant gains for long-term holders.