"First Treasury" added another "20 billion US dollars bullets", and Ethereum "added fuel to the fire" broke through the $4,500 mark

Source: Wall Street News

Bitmine announced on Tuesday that it plans to issue additional shares worth up to $20 billion through its "at-the-market" equity program to raise funds for purchasing more Ethereum. Meanwhile, capital inflows into spot Ethereum ETFs are also accelerating, together pushing the world's second-largest cryptocurrency to new heights.

The frantic accumulation of coins by corporate Ethereum treasury companies, combined with record-breaking ETF inflows, has jointly driven the world's second-largest cryptocurrency to new highs.

The price of Ethereum (ETH) once surpassed $4,500 on Tuesday, hitting a new high for the year, with an intraday increase of approximately 4.85%. According to data from The Block, Ethereum has risen by about 40% so far this year, and its year-to-date price performance has matched that of Bitcoin.

The most direct catalyst for Tuesday's rise came from Bitmine Immersion Technologies, the largest "Ethereum treasury company" in the market. The company announced on Tuesday that it plans to issue additional shares worth up to $20 billion through its "at-the-market" equity program to raise funds for purchasing more Ethereum.

At the same time, capital inflows into spot Ethereum ETFs are accelerating. These products, which only started trading in July 2024, have increased their market value by approximately $5 billion in the past month alone and recorded the first single-day net inflow of more than $1 billion on Monday, indicating a strong market demand shock.

The Ambition of the "Top Treasury"

Bitmine Immersion Technologies (BMNR) is increasingly becoming a force to be reckoned with in the Ethereum market.

The company positions itself as an "Ethereum treasury company," and its business model imitates MicroStrategy, which has achieved great success in the Bitcoin field—raising funds by issuing stocks and using the proceeds to purchase and hold cryptocurrencies on a large scale.

According to the latest data, Bitmine currently holds 1.15 million Ethereum coins, worth approximately $5 billion at current prices, accounting for about 1% of Ethereum's total circulation. The company is led by investor Tom Lee, and its stated goal is to eventually hold 5% of the global circulating supply of Ethereum.

Tom Lee said in a press release: "We are ahead of our peers both in terms of the speed of increasing net asset value per share of crypto assets and the high trading liquidity of our stocks."

This plan to increase holdings greatly boosted market sentiment. After the news was announced, Bitmine's stock price rose more than 5% on Tuesday, with its year-on-year increase of more than 750%.

The race among enterprises to increase their holdings of Ethereum has also entered a white-hot stage.

As previously mentioned by Wall Street News, Minneapolis-based SharpLink Gaming recently announced that it has raised $400 million from five global institutional investors through a registered direct offering, aiming to push the value of its Ethereum treasury to more than $3 billion. According to public data, SharpLink currently holds approximately 280,706 Ethereum coins, worth slightly more than $1 billion.

Joseph Lubin, chairman of SharpLink, recently described this on social platform X as a "fierce battle for leadership" and高调宣称 "Game on," adding more drama to this wealth battle.

Surge in ETF Demand

In addition to the active layout of corporate treasuries, demand from spot ETFs is another major driver for the rise in Ethereum prices. Since being approved for listing in July 2024, the total net inflow of spot Ethereum ETFs has reached $9.4 billion, more than half of which (about $5 billion) has come in the past 30 days.

On Monday, these ETF products even set a historic milestone, with single-day net inflows exceeding $1 billion for the first time. This series of data indicates that Ethereum, as an investable asset class, is rapidly gaining recognition and allocation from traditional financial investors. This continuous and strong capital inflow provides solid support for Ethereum's market price.

The dual purchases by corporate treasuries and ETF funds are significantly affecting the supply and demand relationship of Ethereum.

Matt Hougan, chief investment officer of Bitwise, described this phenomenon as a "demand shock." According to his estimation, since May this year, the amount of Ethereum purchased by funds and corporate treasuries is 32 times the newly mined supply of the network in the same period. Hougan predicts that under this situation of supply shortage, the price of Ethereum may continue to rise.

The Development of Treasury Companies Has Just Begun

Geoffrey Kendrick of Standard Chartered Bank pointed out in a report that the development of Ethereum treasury companies is "just beginning," and over time, the holdings of these companies may increase tenfold, eventually reaching 10% of Ethereum's total supply.

The rise of the Ethereum treasury strategy is not an isolated case. In addition to the leading Bitmine, cryptocurrency broker Coinbase (COIN) also holds more than 100,000 Ethereum coins on its balance sheet, worth more than $500 million.

It is reported that other companies including SharpLink Gaming (SBET) are also adopting similar strategies. This trend has even extended to the Bitcoin field, for example, GameStop (GME) announced in March this year that it plans to include Bitcoin in its balance sheet.

In addition, the fundamentals of the Ethereum ecosystem also support its value. According to Coindesk, the successful IPO of financial technology giant Circle in June this year and the recognized status of the Ethereum network as the preferred ecosystem for most stablecoin issuances have enhanced its long-term value as a key blockchain infrastructure. These factors are jointly reshaping investors' perception and valuation models of Ethereum.

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