Bitmine Immersion Technologies, led by investor Tom Lee, has bought 45,759 Ethereum tokens worth about $91 million, according to a press release from the company.
This purchase happened during a time when the market was down, which shows that the company saw the downturn as an opportunity to buy more instead of pulling back.
When institutional investors buy tokens worth millions, it usually means they are confident about Ethereum’s future, even when the market changes.
Bitmine seems to be hopeful about the future of Ethereum because more and more people are using it in decentralized finance, blockchain, and the overall growth of the Ethereum network.
Bitmine’s Ethereum Holdings Rise to 4.37M Tokens
The acquisition has increased Bitmine Immersion Technologies’ total Ethereum assets to 4.37 million, with the company stating that 3.04 million of these have been staked to earn passive income.
The acquisition comes at a very strategic time since Ethereum prices have continuously underperformed, being in tandem with the larger market. Tom Lee in the press release stated that the drop in price was likely a good time to buy Ethereum, reiterating that the firm believes that the fundamentals and use cases of Ethereum will make it worth more in the future.
Some institutional investors are ready to buy Ethereum even when the market is nervous, which shows that they have a lot of faith in it for the long term.
ETH down over 45 percent YTD
Ethereum’s price has dropped drastically in the past couple of weeks owing to the strong selling pressure in the market. The slump has seen ETH shed more than 45 percent of its value this year.
The price drop comes on the back of the market being cautious and traders selling to lower their risk.
Some on-chain metrics, though, show that the selling pressure is starting to ease off, which could mean that the sellers are running out of steam. A lot of the time, this happens, and investors want to “buy the dip.”
Analysts say that the price of Ethereum will depend on how stable the market is and whether it can stay above the key $2,000 mark.