Bitmine bought another 10,452 ETH last week and also repurchased 2.04 million of its own shares. It is still adding buying pressure to ETH, but the company is also willing to spend money on its own stock.
According to its October 26 announcement, as of the 25th it held about 6.05 million ETH, or 4.95% of the total supply, putting it within reach of its 5% target. Continued accumulation is good for ETH, but that target doesn’t tell us how much more it will buy once it gets there, and the announcement doesn’t say it will stop buying at 5%.
Management says it will consider repurchases when it believes the company’s stock is relatively undervalued. I think we need to keep judging this crypto treasury company’s support for ETH by how many coins it actually buys, rather than focusing only on its holdings nearing 5%. Buybacks don’t add buying pressure to ETH, but we also can’t conclude from this repurchase alone that it means the company bought that much less ETH. The company is spending money on both ETH and buybacks, and the announcement doesn’t say how much it plans to spend on ETH going forward.
According to its October 26 announcement, as of the 25th it held about 6.05 million ETH, or 4.95% of the total supply, putting it within reach of its 5% target. Continued accumulation is good for ETH, but that target doesn’t tell us how much more it will buy once it gets there, and the announcement doesn’t say it will stop buying at 5%.
Management says it will consider repurchases when it believes the company’s stock is relatively undervalued. I think we need to keep judging this crypto treasury company’s support for ETH by how many coins it actually buys, rather than focusing only on its holdings nearing 5%. Buybacks don’t add buying pressure to ETH, but we also can’t conclude from this repurchase alone that it means the company bought that much less ETH. The company is spending money on both ETH and buybacks, and the announcement doesn’t say how much it plans to spend on ETH going forward.