BitMine Immersion Technologies (BMNR), the Ethereum-focused digital asset treasury company, said Monday that it has acquired more than 54,000 ether. last week, worth about $173 million at current prices.
The company now holds nearly 3.6 million ETH, or almost 3% of the token’s bumper supply, alongside a small reserve of bitcoin and equity in Worldcoin-focused treasury company Eightco (ORBS). It also increased its liquidity to $607 million, up from $398 million last week.
BMNR shares slipped 2.6% on Monday to their lowest level since August.
BitMine Chairman and Fundstrat co-founder Thomas Lee attributed the current weakness in crypto prices to a sharp drop in liquidity, likely caused by the withdrawal of an injured market maker after the October 10 crash.
“When a market maker has a ‘hole’ in its balance sheet, it seeks to raise capital and reduces its liquidity functions in the market,” Lee said, comparing the situation to a sort of “quantitative squeeze” (QT) for crypto assets. “In 2022, this QT effect lasted 6 to 8 weeks,” he said.
Despite the current downturn, BitMine does not believe crypto has reached a cycle top yet, Lee said. In his November shareholder note, he argued that structural factors could push the peak of the cycle until 2026 or later. He also highlighted the tokenization of assets such as stocks, bonds and real estate on the Ethereum blockchain as a key trend to watch, calling it a “major unlock” for the financial system.
Read more: Tom Lee says Ether is entering a Bitcoin-like ‘supercycle’; Critics push back
