Ethereum followed a broader market correction, severely impacting the holdings of BitMine, the largest treasury Ether holder.
BitMine Immersion Technologies has acquired Ethereum immensely since it began an Ether-based corporate treasury strategy in late June. Barely four months in, the Tom Lee-chaired company has amassed a staggering 2.83 million ETH, becoming the leader in the Ethereum treasury firm category.
Market Downside Severely Impacts BitMine Ether Stash
Notably, BitMine disclosed that it acquired its 2,830,151 ETH holdings as of October 5 at an average price of $4,535 per token. This means its purchasing cost is a staggering $12.8 billion, accruing 2.34% of Ethereum’s total supply.
However, Ethereum dipped to $3,510 on Friday, spurred by Donald Trump’s renewed trade war with China. While Ether has rebounded from the low to trade at $3,780 at the time of writing, it still sits miles below BitMine’s average cost price.
For perspective, at the current price of $3,780, the Ether holdings are worth $10.69 billion. This marks a difference of $2.13 billion from BitMine’s $12.8 billion buying cost. However, the 16.48% loss remains unrealized at the time of writing.
BitMine Buys the Ethereum Dip
Despite the unrealized losses, BitMine has shown commitment to buying more. Lookonchain identified that two new wallets tied to the company just withdrew millions of Ethereum from exchanges, taking advantage of the discounted price.
Specifically, address “0x8DF4” withdrew 24,409 ETH from Kraken four hours ago, with another BitMine-tied wallet, “0xedf1,” buying 8,914 ETH from FalconX. The recent accumulated figure totaled 33,323 ETH, worth $126.4 million.
Meanwhile, this follows an ongoing whale dip buying trend. Lookonchain highlighted that another OTC whale bought 14,165 ETH ($55.5 million) from FalconX, Coinbase, and Wintermute a few hours ago.
Even Hackers Panic-Sold Ethereum
Nonetheless, the Ethereum capitulation saw even hackers panic-sell their holdings. Lookonchain shared in a parallel tweet that two wallets linked to hackers could not bear the market crash and sold at a loss.
The wallet dumped 5,480 ETH ($20.47 million) bought a week ago at an average price of $3,735, resulting in a loss of $3.7 million.
DisClamier: This content is informational and should not be considered financial advice. The views expressed in this article may include the author's personal opinions and do not reflect The Crypto Basic opinion. Readers are encouraged to do thorough research before making any investment decisions. The Crypto Basic is not responsible for any financial losses.
