Ethereum Treasury Buying Slumps as BitMine Leads Accumulation
Corporate Ethereum treasury purchases have slowed sharply from their August peak, with overall acquisitions retreating while a small number of large buyers continue to absorb substantial amounts of Ether.
Investments by Ethereum digital asset treasuries (DATs) declined 81% over the past three months, falling from 1.97 million Ether (ETH) in August to 370,000 ETH in November, according to asset manager Bitwise.
“ETH DAT bear continues,” Max Shennon, a senior research associate at Bitwise, said in a post on X on Tuesday.
Source: Max Shennon
Despite weaker aggregate flows, firms with stronger balance sheets have continued to build positions in the second-largest cryptocurrency or secure funding for prospective purchases.
BitMine targets 5% of ETH supply
BitMine Immersion Technologies, the largest corporate holder of Ether, acquired roughly 679,000 ETH valued at $2.13 billion over the past month, reaching 62% of its goal to accumulate 5% of the total ETH supply, according to data from the Strategicethreserve.
The data aggregator also shows BitMine holds an additional $882 million in cash, indicating potential for further Ether purchases.
Top corporate Ether holders. Source: Strategicethreserve.xyz
Earlier in November, Republic Technologies (formerly Beyond Medical Technologies) raised $100 million via a convertible note to fund future Ether acquisitions.
The offering featured atypical terms for DATs, including a 0% interest rate, no ongoing interest payments to investors, and no collateral requirements if Ether’s price declines.
Because there are no interest payments, Republic does not incur cash costs to service the debt and cannot default on interest, an issue that has affected some digital asset firms.
Crypto treasury-linked equities advanced on Tuesday, led by Ether-focused DATs. Nasdaq-listed EthZilla (ETHZ) rose 12.35% on the day, while shares of BitMine gained 10.26%, according to Google Finance.
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