Bitmine emphasizes that Ethher (ETH) can be given several uses, in addition to ‘holding it’.
The company aims to accumulate 5% of the entire ETH -circulating.
Bitmine Immersion, a firm that abandoned Bitcoin mining to focus on the accumulation of Ether (ETH), Ethereum cryptocurrency, estimates that the price of the cryptoactive could reach 60,000 dollars, compared to the current $ 3,800.
Its ambitious plan, inspired by giants like Strategy, It intends to redefine the role of companies in the ecosystem, accumulating a key asset in the digital economy.
In his report “The alchemy of 5%”, Bitmine Immersion, listed in Nasdaq, details its treasury strategy centered on eth. The company invested 250 million dollars through a pipe (private investment in public capital) and, in just 18 days, accumulated 625,000 ETH, valued at 2.7 billion dollars in ETH and Treasury cash.
Your goal It is controlling 5% of Eth’s total supplyan objective that compares to accumulate unique and scarce assets such as Tesla’s actions.
Bitmine is inspired by Strategy, which since August 2020 has adopted an aggressive accumulation strategy of Bitcoin (BTC), acquiring 607,770 BTC.
While Strategy reached a level of holdings of 2.7 billion dollars in 180 days, Bitmine achieved the same figure in ETH in just 18 days. The firm aspires to be the “Strategy of Ethereum”, consolidating as a reference in the accumulation of Ether.
Why Ethereum: The vision of Wall Street
Bitmine is committed to Ethereum’s boom in global finances. Tom Lee, president of the company, Compare the impact of stablecoins with the “chatgpt moment” of cryptocurrencieshighlighting that 60% of these operate in Ethereum.
The secretary of the US Treasury. UU., Scott Besent, provides that the stablcoins will reach the 4 billion dollars, an increase of more than ten times from its current market value. The tokenization of assets in Ethereum by Wall Street further drives the demand of ETH.
Bitmine quotes studies that, for illustrative purposes, assign ETH to a “replacement value” of $ 60,000, a theoretical calculation that reflects its importance in applications such as Defi and Stablecoins, compared to its current price of $ 3,800.
Exponential growth of the share value
The liquidative value (NAV) By action of Bitmine BMNR shot 4 to 23 dollars between July 8 and 27an increase of six times.
This growth is based on five strategies: issuing shares with premium, converting emissions taking advantage of volatility, using operational income to buy ETH, reinvesting staking profits and acquiring operations with a discount on the NAV (that is, buying assets below its market liquidative value). These tactics strengthen their position as a digital infrastructure company.
Bitmine Not only accumulates eth, but it is intended to be positioned as a pillar of the Ethereum Network. Through the Staking, it protects the network, generates income and is consolidated as a network security provider, says.
“Companies with treasury in Ethereum are more than asset holders; they are digital infrastructure,” says Bitmine. The firm emphasizes that Stablecoins and Wall Street semners are looking for ETH as a safe level 1 layer, reinforcing their business model.
Institutional Promotion in boom
The accumulation of ETH by Bitmine is not an isolated event. Matt Hougan, investment director of the Bitwise Investment Company, points out an imbalance between the supply and institutional demand of ETH. As cryptootics reported, Hougan identifies several bullish factors for cryptocurrencysuch as the growth of decentralized finances (Defi), the use of stablcoins and the real world assets (RWA).
Warns that The accelerated entry of institutional actors could generate a “demand crisis” in the coming months, raising even more the ETH price.
With its road map to the “5%alchemy”, Bitmine explores new opportunities while accumulating ETH. The versatility of ETH, from the staffing to its role in Defi and Stablcoins, supports its strategy. While Wall Street and institutional investors add to the Ethereum ecosystem, Bitmine is positioned as a key actor into a market that could transform the digital economy in the next decade.
