Bitmine Has 3.3% Of The ETH Supply As DATCO Acquisitions Pick Up

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Bitmine has reportedly added $140 million worth of ETH to its growing stack, taking total holdings to 3,967,210 ETH, worth nearly $12 billion. This equates to around 3.3% of the total supply. Bitmine has set a target of holding 5% of the supply of Ethereum. 

Headed by maverick perma-bull Tom Lee, Bitmine has taken advantage of the recent dip in prices after acquiring $320 million worth of ETH a few days ago before this latest purchase.

Even earlier in the month, Bitmine added $420 million worth of ETH to its stack. Tom Lee’s aggressive acquisition comes despite doubts around the financial strength of many of the digital asset treasury companies (DATCOs). Indeed, mNAVs – a ratio comparing enterprise value to crypto holdings value – have been declining for several months. 

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Despite this, DATCOs have been increasing the rate of acquisition after a sluggish few months. DATCO Bitcoin acquisitions have had two straight weeks of nearly $1 billion worth of BTC acquisitions. This has been driven mostly by Strategy. 

Strategy spent $963 million on over 10k BTC on the 8th December and then spent a further $980 million on more than 10k BTC on the 15th December. Strategy recently switched to an omnibus custodial system for their BTC stack. This means that some of their BTC is attributed to the Fidelity Custody entity on the Arkham Intel Platform. 

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Despite DATCO acquisitions accelerating in recent weeks, the market has not picked up. This continues a recent trend where prices fail to respond to bullish events. 

In December alone, the Fed has lowered interest rates, Trump has signalled he will replace Powell with a pro-crypto Fed Chair, $11 trillion asset manager Vanguard has softened its stance on crypto, and the Fed has halted quantitative tightening (QT) and started adding to its balance sheet again (adding liquidity to the markets).

Despite this, prices have not moved. BTC started the month around $85k, briefly went up to $93k before sliding to around $87k at the time of writing.