10:05 AM ▪
5
min read ▪ by
The whales are waking up and hungry. Geopolitical tensions or upheavals in traditional financial markets do not play a role. This time the confusion comes from the second most valuable cryptocurrency on the market. The sound of checkbooks rises, strong and regular like a well-oiled engine. The American company leads the dance with a determination rare in the industry. Bitmine, led by Tom Lee, has just passed a symbolic milestone in its quest for Ethereum.
In short
- Bitmine holds 4.596 million Ethereum, which represents 3.81% of the network’s total supply.
- The company generates $180 million in annual revenue thanks to a deposit of 3.04 million ETH.
- Bitmine purchased 5,000 ETH directly from the Ethereum Foundation via an OTC transaction for $2,042.
- Tom Lee invested in Eightco to gain indirect exposure to OpenAI with Cathie Wood as an advisor.
3.81% Ethereum Supply: Bitmine’s Strategy to Dominate Cryptocurrencies
Let us first look at the strategy deployed by this company unlike any other. Bitmine applies to Ether what Michael Saylor masterfully did for Bitcoin. Massive accumulation, ultra-transparent communication, quantified and boldly predicted targets. Tom Lee, chairman and co-founder of Fundstrat, pilots this machine with Swiss watchmaking precision.
Today, Bitmine holds 4.596 million ETH in its hands. This number simply represents 3.81% of the total Ethereum network supply. Tom Lee’s declared goal? Achieve 5%, which in recent communications he poetically calls “the alchemy of 5%.” The pace of purchases has picked up noticeably in recent weeks.
” Bitmine has slightly increased the pace of its ETH purchases in the last two weeks as our base case scenario is that ETH is in the final stages of a “crypto mini winter” ” explains Tom Lee
Weekly acquisitions recently increased from 45,000 to 60,999 ETH.
180 million per year: bets turn cryptocurrencies into a comfortable income
Owning 4.6 million ETH is one thing. Next, much smarter is to know how to make it grow. Bitmine put 3.04 million Ethereum into service, or 66% of its total holdings. These ethers are staked in the network, actively participating in its security and at the same time generating significant income. At the current price of $2,330 per unit, this represents about $7 billion placed on validators.
The result is impressive: an annual income of 180 million dollars deposited in the coffers every year. And that’s just the beginning, far from it. When all stakes are staked through MAVAN, an internal platform scheduled to launch in the next few days, revenue could rise to as much as 272 million a year.
Meanwhile, Bitmine keeps $1.2 billion in cash in its vaults. Enough to buy more, for sixteen opportunities that will come without stopping.
OpenAI, the Ethereum Foundation and the Iran War: Tom Lee’s Winning Plan
Bitmine’s patiently constructed edifice is cemented by three recent features. First, a historic purchase of 5,000 ETH directly from the Ethereum Foundation. OTC transaction executed at a price of $2,042 each. The foundation made the operation official on
Today, the Ethereum Foundation completed the terms of selling 5,000 ETH at an average price of $2,042.96 via OTC. Our OTC counterparty for this sale was @BitMNR.
This operation allows the foundation to finance its research and development without selling on the market. An implied blessing for Bitmine. Second, investing in Eightco offers direct exposure to OpenAI. ARK Invest’s Cathie Wood becomes strategic advisor. The crypto-AI convergence is taking shape before our eyes.
Third, Tom Lee’s macro thesis about the Iran conflict is paying off.
The rush to Ethereum in numbers
- 4.596 million ETH: the amount held by Bitmine, or 3.81% of the total supply;
- $180 million: annual income generated by depositing 3.04 million ETH;
- 5,000 ETH: amount purchased directly from the Ethereum Foundation in OTC;
- $1.2 billion: cash to continue acquisitions;
- $2,336: the current price of Ethereum in the markets.
Accumulating Ethereum is not a smooth ride for investors. On paper, you win or lose based on market sentiment. SharpLink, another institutional buyer, posted losses of $743 million as it continues to make purchases. Evidence that strategy goes beyond simple short-term accounting considerations. Whales have thick skin and long memories in this ecosystem.
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The blockchain and crypto revolution is in full swing! And on the day the effects are felt by the most vulnerable economy in this world, I will say against all hope that I had something to do with it
DISCLAIMER OF LIABILITY
The views, thoughts and opinions expressed in this article are solely those of the author and should not be construed as investment advice. Before making any investment decision, do your own research.
