Bitcoin and Ethereum corporate treasuries have seen fresh growth this week as both Strategy and BitMine have announced new acquisitions.
Strategy & BitMine Have Both Added To Their Treasury Reserves
Strategy and BitMine, the largest Bitcoin and Ethereum treasury companies, respectively, have just revealed new purchases. The former’s announcement comes through a routine Monday X post from co-founder and chairman Michael Saylor. With this purchase, the company has added 397 BTC to its holdings.
The buy, which occurred in the period between October 27th and November 2nd, cost Strategy about $114,771 per token, or a total of $45.6 million. This acquisition isn’t too big and continues the recent trend of small, but consistent purchases from the Bitcoin hoarder.
According to the filing with the US Securities and Exchange Commission (SEC), the firm’s acquisition has come alongside sales of its STRF, STRK, STRD, and MSTR at-the-market (ATM) stock offerings.
While Strategy’s purchase has been relatively modest, BitMine has made a more substantial acquisition. As announced in a press release, the Ethereum treasury company expanded its holdings by 82,353 ETH during the past week, worth about $302 million at the current exchange rate.
BitMine now owns 3.4 million ETH, equivalent to 2.8% of the cryptocurrency’s entire circulating supply. “We are now more than halfway towards our initial pursuit of the ‘alchemy of 5%’ of ETH,” noted Thomas “Tom” Lee of Fundstrat, Chairman of BitMine.
BitMine is the largest ETH treasury in the world, but in terms of overall cryptocurrency corporate holders, the firm comes second behind Strategy. Saylor’s firm holds 641,205 BTC after the latest purchase, equivalent to over 3.2% of the Bitcoin supply.
Strategy invested a total of $47.49 billion into these holdings, and today, the tokens value at $68.8 billion, giving the firm a healthy profit margin. While the Bitcoin treasury is in the green, BitMine’s ETH reserves are underwater. The company spent $13.25 billion to assemble its Ethereum stack, but at current prices, the reserve values at $12.43 billion.
Both BTC and ETH have gone through bearish price action recently, but the reason Strategy’s holdings are still strong lies in the fact that the firm has been at its buying spree for years now, while BitMine is a new player in the space, so its cost basis is much closer to recent prices.
While Strategy and BitMine have continued to accumulate recently, the wider trend in the sector is that institutional buying pressure has been slowing down. As Capriole Investments founder Charles Edwards has explained in an X post, net institutional accumulation has dropped below the daily miner issuance.
The trend in institutional BTC buying | Source: @caprioleio on X
This is the first time in seven months that this trend has developed, suggesting a shift in institutional interest in Bitcoin.
BTC Price
At the time of writing, Bitcoin is floating around $107,300, down 7% over the last seven days.
Looks like the price of the asset has seen a plunge in the past day | Source: BTCUSDT on TradingView
