Russell 1000 newcomer Bitmine expands Ether portfolio to 5.7M tokens
The company acquired approximately $43 million in Ether during the previous week following its Russell 1000 Index inclusion, moving nearer to its target of controlling 5% of ETH's total supply.
During the previous week, Ether treasury firm Bitmine Immersion Technologies increased its cryptocurrency reserves by acquiring over 27,000 Ether tokens, coinciding with the company's addition to the Russell index that monitors the top 1,000 United States corporations.
In a Monday announcement, Bitmine revealed that following its most recent acquisition worth $43 million, the company now possesses slightly more than 5.7 million Ether (ETH) acquired at a mean price of $1,569 for each token and controls 4.7% of the total ETH supply consisting of 120.7 million tokens, advancing toward its objective of possessing 5% of Ether's total supply.
Tom Lee, chairman of Bitmine, noted that the previous week "was a challenging one for crypto investors as ETH fell by 8%, even as Ethereum witnessed notable positive developments such as the creation of Ethlabs, and even the Bank of England softened its stance around stablecoins."
This most recent Ether acquisition further solidifies Bitmine's position as the biggest publicly-traded corporate holder of Ether. Additionally, the company's entry into the Russell 1000 is expected to generate increased investor appetite for Bitmine shares, given that numerous mutual funds, ETFs and pension funds monitor the Russell 1000 and are required to purchase the stock following its addition.
"Being added to the Russell 1000 is expected to add hundreds and possibly thousands of additional institutional investors as equity owners of Bitmine,"
Tom Lee, Bitmine Chairman
Back in May, when Bitmine initially became eligible for consideration for the Russell index, Lee had indicated that passive index funds could hold as much as 25% of the market capitalization of stocks included in the index.
Bitmine's stock (BMNR) experienced a 1.7% increase on Monday to close at $13.80, though the company's shares have declined 9% throughout the preceding trading week in tandem with Ether.
At the same time, competing crypto treasury companies Sharplink and Forward Industries, alongside cryptocurrency exchange Gemini and digital asset services company Galaxy Digital, also secured positions in the Russell 3000 Index last Friday, an index that monitors the top 3,000 United States corporations.
Ether's price dropped beneath $1,600 during the past week, prompting Lee to observe that "it is not surprising to see 'window dressing' leading to investors reducing their holdings in assets that have fallen in the past three months."