Reports have disclosed the haul is worth almost $1.5 billion. The purchases have not been officially confirmed by BitMine, but the transfers were visible on public ledgers.
BitMine is reported to hold more than 3 million ETH, which equates to about 2.5% of the entire supply, and that stash was valued at roughly $11.7 billion at recent prices.
Based on reports, the firm has set a goal of reaching 5% of supply and only began building the treasury in early July when Ether was near $2,500.
Tom Lee of Fundstrat has also been buying — he said he purchased $1.5 billion worth of Ether since the market crash — signaling that some large players see long-term upside.
Reports say Lee warned that the hype around digital asset treasuries, or DATs, may be fading, with many DATs trading at or below their net asset value (NAV).
Research firm 10x Research reported that several major DATs were near or under NAV. That has led investors to ask whether the trading discounts reflect lasting trouble or a brief market reset.
Huobi founder Li Lin is reportedly raising about $1 billion to put into an Ether treasury, which shows some firms still want exposure despite the cheap trading levels.
According to Lee, Ethereum could “flip” Bitcoin in a way he compared to how Wall Street and equities overtook gold after 1971. He also warned investors are still “licking their wounds” from a record leverage flush.
Markets are down 15% from the October 7 high, while gold has eased about 3% from its peak. Those moves are shaping where big holders place their bets.
Meanwhile, based on social posts and blockchain data, Kevin O’Leary sounded the alarm about congestion on Ethereum after fees spiked during the sell-off.
He wrote that simple transactions briefly carried fees of as much as $1,000, calling attention to limits in handling sudden demand.
Etherscan data showed average daily gas prices hit a nine-month high last Friday, which was confirmed by market trackers.
Featured image from Unsplash, chart from TradingView
