On Monday, BitMine Immersion Technologies experienced a remarkable surge, with its stock jumping nearly 20%, climbing from just below $27 to over $31 per share. This impressive performance is indicative of the broader trend where digital asset treasury companies outperformed the overall crypto market, which saw a modest increase of 2.1% in total market capitalization.
Currently, BitMine holds approximately 3% of the total Ether supply, amounting to around $10.6 billion across 3.63 million ETH. This substantial holding has garnered institutional interest, with ownership rising sharply from 6% to 31.7% in just 13 days. This institutional backing is a testament to the confidence investors have in BitMine”s strategy.
Other digital asset treasury stocks also reported gains during Monday”s trading session. SharpLink Gaming saw its shares rise nearly 6%, reaching a price above $10, while Strategy (MSTR), led by Michael Saylor, gained 5%, closing at $179. These performances highlight a growing trend where companies focused on digital asset treasuries are gaining traction in the current market environment.
The recent rally in Ethereum prices has also contributed to the positive momentum. Over the past 24 hours, ETH experienced a gain of approximately 3%, peaking at an intraday high of $2,980 before encountering resistance. Despite this uptick, Ethereum remains down 41% from its all-time high of $4,946 reached in August.
According to macro investor Ted Pillows, the ongoing accumulation by Ethereum treasury companies like BitMine suggests that there are no signs of a bottom yet. He noted that a reversal in these treasury stocks could potentially lead to a significant shift in ETH prices.
In recent weeks, BitMine has continued its accumulation strategy, purchasing 69,822 ETH last week during a market dip. Chairman Tom Lee emphasized that the company is progressing toward its goal of holding 5% of the total Ethereum supply, referred to as the “Alchemy of 5%.” Despite a notable decline of 50% since early October, when crypto markets were at their peak, BitMine”s stock has skyrocketed by 630% since it initiated its Ether accumulation strategy in late June.
As the cryptocurrency market continues to evolve, the performance of digital asset treasury companies like BitMine serves as a crucial indicator of investor sentiment and market dynamics. With institutional backing and a robust accumulation strategy, BitMine is positioning itself as a key player in the digital asset landscape.
