Ethereum News: BitMine (BMNR) Bought 97K in ETH Ahead of Fusaka Upgrade

BitMine Immersion Technologies, an Ethereum-focused treasury firm led by Thomas Lee, has intensified its acquisitions of Ethereum, purchasing 96,798 ETH over the past week. Despite facing considerable unrealized losses, the firm continues to accumulate assets in a challenging market for digital asset treasuries.

BitMine Immersion Technologies continues buying ETH despite losses

In a recent announcement, BitMine reported that it has increased its pace of Ethereum purchases. The company, which is already the largest holder of Ethereum, acquired this significant amount of ETH at a price of approximately $2,813.13 per token. This move comes at a time when many digital asset firms are retreating due to declining crypto prices. BitMine’s strategy stands out as it continues to invest while others are either halting purchases or starting to sell off their holdings.

Firm increases Ethereum holdings to 3.73 million tokens

With this latest acquisition, BitMine has raised its total Ethereum holdings to 3.73 million tokens, valued at around $10.5 billion at current prices. In addition to its Ethereum assets, BitMine also holds 192 Bitcoin, a stake in Eightco Holdings worth $36 million, and about $882 million in cash. However, the firm's shares saw a decrease of 7.7% in pre-market trading as the price of ETH dropped by 6% overnight, falling just above $2,800. This decline in value has resulted in BitMine sitting on nearly $4 billion in unrealized losses on its Ethereum investments.

Fusaka upgrade expected to boost Ethereum network performance

Looking ahead, Thomas Lee highlighted the anticipation surrounding the upcoming Fusaka upgrade, set to activate on December 3. This upgrade aims to enhance the scalability, security, and usability of the Ethereum network. Lee believes that the improvements brought by the Fusaka upgrade could serve as a catalyst for a positive shift in Ethereum’s market performance.

Federal Reserve policy changes could impact crypto markets

In addition to the anticipated upgrade, Lee pointed to the macroeconomic environment as another reason for increased purchases. He noted that the Federal Reserve is expected to halt its quantitative tightening measures soon, with potential interest rate cuts on the horizon. Since the crypto market has seen some stabilization since the significant crash on October 10, these factors combined could create favorable conditions for Ethereum prices. Lee mentioned that these elements prompted BitMine to increase its weekly ETH purchases by 39%.

As the market continues to evolve, the strategies employed by firms like BitMine may provide insights into the potential future performance of Ethereum and the broader crypto landscape.