BitMine bought another 10,452 ETH, but this week it spent nearly twice as much buying back its own shares as it did buying crypto—the buying news is bullish, but where the money is going is the real story.
Let’s start with the bull case:
① Weekly buying hasn’t stopped: BitMine added 10,452 ETH last week, worth about $24.5 million. Its total holdings have climbed to 6.0519 million ETH, or 4.95% of the total ETH supply—just about 58,000 ETH short of the interim 5% target Tom Lee has set.
② A solid staking base: About 5.23 million ETH, or 86% of its holdings, is staked, generating roughly $318 million in annualized revenue. That provides a safety net that lets the company hold ETH for the long term.
③ The long-term narrative is still alive: Tom Lee has called for a $10,000 price target within the next 12 months, and the institutional bullish case for Ethereum is far from over.
The bear case is just as compelling:
① Buying momentum is steadily fading: 15,112 ETH → 12,535 ETH → 10,452 ETH. That’s the lowest weekly total since mid-August, suggesting marginal buying demand is drying up.
② The cost basis is glaringly underwater: With an average purchase price of about $3,331 and ETH currently around $2,317, the unrealized loss is roughly $6.1 billion, or 30.3%.
③ The price isn’t responding: ETH has fallen below $2,355, down 1.21% over 24 hours. The estimated funding rate for the next period is just 0.0072%—the market hasn’t put money behind this news yet.
④ The average buyback price of $22.48 is above the year-to-date average of $17.48, suggesting a stronger intent to support the share price than to buy the dip.
My take: This isn’t a buy-the-dip signal. It’s a routine weekly update from a crypto-hoarding company nearing its 5% ceiling and starting to shift its focus toward supporting its own share price. Once it reaches 5%, the biggest buyer could switch to a pure buyback-and-staking-income model, leaving ETH with one less meaningful source of marginal buying demand.
Key levels: A high-volume move back above $2,365 would suggest a bottom may be forming; below $2,282, watch the $2,135–$2,156 range.
What would invalidate my view: If next week’s purchases rise back above 15,000 ETH and ETH moves back above $2,365 on strong volume, my “buying demand is drying up” thesis is out the window.
Once BitMine hits the 5% ceiling, are you betting it will keep buying crypto—or focus entirely on buybacks?
#BitMineAdds10452ETH
Let’s start with the bull case:
① Weekly buying hasn’t stopped: BitMine added 10,452 ETH last week, worth about $24.5 million. Its total holdings have climbed to 6.0519 million ETH, or 4.95% of the total ETH supply—just about 58,000 ETH short of the interim 5% target Tom Lee has set.
② A solid staking base: About 5.23 million ETH, or 86% of its holdings, is staked, generating roughly $318 million in annualized revenue. That provides a safety net that lets the company hold ETH for the long term.
③ The long-term narrative is still alive: Tom Lee has called for a $10,000 price target within the next 12 months, and the institutional bullish case for Ethereum is far from over.
The bear case is just as compelling:
① Buying momentum is steadily fading: 15,112 ETH → 12,535 ETH → 10,452 ETH. That’s the lowest weekly total since mid-August, suggesting marginal buying demand is drying up.
② The cost basis is glaringly underwater: With an average purchase price of about $3,331 and ETH currently around $2,317, the unrealized loss is roughly $6.1 billion, or 30.3%.
③ The price isn’t responding: ETH has fallen below $2,355, down 1.21% over 24 hours. The estimated funding rate for the next period is just 0.0072%—the market hasn’t put money behind this news yet.
④ The average buyback price of $22.48 is above the year-to-date average of $17.48, suggesting a stronger intent to support the share price than to buy the dip.
My take: This isn’t a buy-the-dip signal. It’s a routine weekly update from a crypto-hoarding company nearing its 5% ceiling and starting to shift its focus toward supporting its own share price. Once it reaches 5%, the biggest buyer could switch to a pure buyback-and-staking-income model, leaving ETH with one less meaningful source of marginal buying demand.
Key levels: A high-volume move back above $2,365 would suggest a bottom may be forming; below $2,282, watch the $2,135–$2,156 range.
What would invalidate my view: If next week’s purchases rise back above 15,000 ETH and ETH moves back above $2,365 on strong volume, my “buying demand is drying up” thesis is out the window.
Once BitMine hits the 5% ceiling, are you betting it will keep buying crypto—or focus entirely on buybacks?
#BitMineAdds10452ETH